Isn’t Honesty the Best Policy? by Tammy Duckworth
...'The Kazdas didn’t know their advisers were pocketing almost 10 percent in commissions by aggressively selling them inappropriate investment products. After a few years, their life savings had fallen by $125,000.
According to the White House Council of Economic Advisers, Americans lose an estimated $17 billion in retirement savings each year because of misleading advice of the type that the Kazdas received. And now, the Chamber of Commerce and others that benefit under the current system are fighting to make sure people keep losing that money.
In a new lawsuit, the chamber is seeking to prevent the government from holding retirement advisers to the same standard as doctors, lawyers or accountants — known as a “fiduciary” standard — which requires people in positions of trust to always act in their client’s best interest.
The Department of Labor has been working since 2010 to hold everyone who provides financial retirement advice to this standard. After multiple public comment periods and significant consultation with industry leaders, consumer advocates and other experts, the department published a final rule that went into effect this week but provides the industry with a realistic transition period.'>>>
http://www.nytimes.com/2016/06/11/opinion/isnt-honesty-the-best-policy.html?
= new reply since forum marked as read