The high-stakes battle centers on a new standard for financial advice affecting the nearly $1t a year rolled over from employer-sponsored 401(k)s to individual retirement accounts. The Labor Department rule would require advisers on IRAs to recommend what is best for the saver and avoid misrepresentations and excessive charges.
“Insurers and agents are fighting for their right to keep ripping off clients, with biased advice and sky-high commissions,” said Joseph Peiffer, president of the Public Investors Advocate Bar Association of lawyers who represent investors. “And, right now, they’re winning.”