Obama is submitting a set of proposed rules for advisers and brokers. The rules come at at time when retirement accounts should grow dramatically. IRA rollovers are estimated to grow to $546b in 2019. Wall Street Groups, Republicans, and even fellow democrats object to the rules fearing they will limit investment offerings as well as compensation to brokers.
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Obama takes aim at brokers' fees on retirement accounts
Brokers would be held to a higher "fiduciary standard," requiring them to put their clients' financial interests ahead of their own. The White House said the proposals target fees and payments that on average lead to a full percentage point lower annual return on retirement savings at a cost to Americans of $17 billion a year. In particular, Obama called for new rules preventing retirement brokers from steering clients' savings into funds with higher fees and lower returns, or advising clients to roll their funds over into higher-cost plans. Speaking at an event hosted by the AARP Inc, formerly known as the American Association of Retired Persons, Obama said, "It's a very simple principle: You want to give financial advice, you’ve got to put your client’s interests first. You can't have a conflict of interest."
