On April 14, the Labor Department proposed new rules to provide greater protection for retirement savings. The proposed rules, if finalized, would strengthen requirements for brokers and investment advisers to act in the interests of investors with regard to individual retirement accounts (IRAs) and 401(k)s.<\/p>\n
The proposed rules are intended to protect investors from being steered into investment products that are unduly complex or otherwise inappropriate. One situation where small investors are particularly at risk is when they roll over funds from 401(k)s, which are managed by employers, into IRAs. Under current rules, brokers advising investors on that transaction do not necessarily have to act in the investor\u2019s best interest. Instead, they may be influenced by higher commissions on certain investment products.<\/p>\n
The new rules would modify the Employee Retirement Income Security Act (ERISA), passed in 1974, broadening the circumstances in which investment professionals are required to act as fiduciaries, or in the (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" On April 14, the Labor Department proposed new rules to provide greater protection for retirement savings. The proposed rules, if finalized, would strengthen requirements for brokers and investment advisers to act in the interests of investors with regard to individual…<\/span><\/p>\n