Mobile Menu - OpenMobile Menu - Closed

Cummings Issues Statement on Department of Labor’s New Conflict of Interest Rule for Retirement Advisors

Apr 14, 2015
Press Release

Cummings Issues Statement on Department of Labor’s New Conflict of Interest Rule for Retirement Advisors

 

Washington, DC (April 14, 2015) – Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued the following statement on the proposed rule issued today by the Department of Labor to prohibit retirement financial advisors from giving conflicted advice to American workers:

“I applaud the Department of Labor for its strong proposed rule to help ensure that hardworking Americans get advice that is in their best interest when saving for retirement.  At a recent Middle Class Prosperity Project forum, Senator Elizabeth Warren and I heard from everyday Americans who saved their entire lives for retirement, but received investment advice that padded their advisors’ wallets at the expense of their own retirement savings. This new proposed rule will help prevent these abuses by ensuring Americans are not hustled out of the prosperous future they have earned.”

On March 24, 2015,  Cummings and Warren convened the second in a series of congressional forums as part of the Middle Class Prosperity Project.  The forum focused on financial  advisers and brokers who profit from selling lousy products to their customers. Because of outdated laws and loopholes, it is legal for these advisors to take kickbacks and commissions that increase their own incomes but drain Americans’ retirement savings. Panelists included industry, government and academic experts, and Americans who lost large parts of their retirement savings because they received bad investment advice from advisers with conflicts of interest. 

114th Congress