What if pharmaceutical companies were allowed to give your doctor a bonus for prescribing medications you didn’t need or even made you sick? What if your lawyer was secretly getting paid by the person suing you, and earning a bonus for losing your case?
It sounds outlandish, but essentially the same thing can happen with retirement advice.
In fact, under the “Retirement Advice Loophole,” which dates back to the 1970s, many so-called “investment advisers” are not required to put your financial interests ahead of their own. They can recommend investments with hidden fees, riskier features, and lower returns -- investments that earn them more money, even if they aren’t as good for you.
Millions of Americans are affected by this loophole every year without knowing it, even though it is draining away thousands of dollars from their retirement nest eggs.
The U.S. Department of Labor is considering a rule to close the “Retirement Advice Loophole” once and for all -- requiring anyone giving retirement advice to put your interests first, period.
But Wall Street Banks and their allies in Congress are determined to quietly block any reforms. They are banking on the fact that most Americans don’t know they are at risk and won’t raise their voices to support these reforms.
Let’s prove them wrong.
Sign our petition to President Obama, the Department of Labor, and Congress to demand that they close the “Retirement Advice Loophole.” Simply by filling out the form to the right and clicking “sign,” you will be letting them know that you agree with this basic idea: All workers and retirees should have the protections of an updated DOL rule that closes the Retirement Advice Loophole.
Your signature could make the difference.
Stand up to Wall Street and close the "Retirement Advice Loophole."
A good rule will ensure that all financial professionals who offer retirement advice must make recommendations designed to serve the best interests of consumers by keeping costs low, recommending sound investments, and protecting retirement nest eggs from unnecessary risks.
All workers and retirees should have the protections of an updated DOL rule that closes the Retirement Advice Loophole.