The US Labor Department announced sweeping rules last Wednesday that may transform the financial advice given to those saving up for retirement. Brokers and advisers are now required to place their clients’ interest first. This rule can create a new standard that’s stricter than current regulations.
According to Thomas Perez, secretary of the Labor Department, this law is a “huge win for the middle class” because “in too many places and on far too many issues, the rules no longer work for working people.” The rules’ proponents recommend that it cut back on cases where retirement savers are steered into pricey and complicated investments, leaving them with greater savings. The Labor Department has stressed that the rule isn’t likely to affect those saving through the 401 K retirement plans.
