NCL statement on fiduciary rule – National Consumers League
April 6, 2016
Contact: Cindy Hoang, cindyh@nclnet.org, (202) 207-2832
Washington, DC–The National Consumers League (NCL) welcomes new standards for investment advice that were finalized today and will be implemented by the Department of Labor. The rule is designed to ensure that all financial professionals who offer retirement investment advice act in their customers’ best interests.
The following may be attributed to NCL Executive Director Sally Greenberg:
While this new rule will be of substantial assistance to retirees and those near retirement, its biggest impact will likely be for young people who will need to create their own retirement savings. They need to be able to rely on their investment advisors to act in their best interests.
Many might assume that this basic, yet essential standard for consumer protection -for financial professionals to act in the customers’ best interests – was already required, but that was not the case until today.
According to estimates by the Obama Administration, more than $17 billion is unnecessarily lost every year from retirement savings under our current system. Over decades, putting this money back into the investment accounts of consumers will add up. This powerful new rule will benefit consumers well into retirement years and help solidify a financially secure future for millions of Americans.
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About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.
