WASHINGTON, DC — In a statement today, AARP Executive Vice President Nancy LeaMond emphasized AARP’s disappointment in delay and continued support for the conflict of interest ‘fiduciary standard’ rule by the US Department of Labor (DOL) published in April of 2016 that ensures retirement advice in the best interest of consumers, not Wall Street.
“Today’s announcement from the Department of Labor harms middle class Americans by putting an unnecessary stop to implementation of a conflict of interest rule that requires retirement investment advice in consumers’ best interest. Prior to the announcement of the delay in enforcement, many consumers have demanded advice that serves them in their best interest, as the rule requires, and many reputable companies have complied with this demand.
“Despite today’s action, many advisers already meet a fiduciary standard, and many more firms, brokers and agents have invested significant time and money to comply with the new rule. It is time that all Americans can count on retirement investment advice in their best interest, not the interest of Wall Street. Unfortunately, for at least some Americans, today’s action means they will continue to get conflicted financial advice, often unbeknownst to them, that costs more and reduces what they are able to save for retirement.
“AARP has worked to make sure middle class Americans receive retirement investment advice that helps them save for a secure retirement without paying hidden charges. For far too long, financial advisers could legally steer clients toward investments that charge higher fees and commissions costing retirement savers $17 billion each year.
“We look forward to continuing to advocate for the successful implementation of this rule so that advisers can no longer legally trick retirement savers in to risky or high-fee investment vehicles.”
AARP also recently submitted a letter to the Department of Labor reiterating the organizations’ position on implementation of the rule.
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AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the world’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.