Key Updates and Responses to Biden's Retirement Security Rule
How the rule works
The Labor Department's new rule mandates investment advisers to offer honest advice free from overcharges and conflicts of interest, updating the definition of an investment advice fiduciary.
Key part of the Biden 'junk fee' agenda
The rule is aligned with the Biden administration's goal to eliminate 'junk fees' and safeguard retirement savings from potential losses incurred by misleading advice.
Why liberals and industry critics support it
Liberals and critics argue the rule closes loopholes in retirement advice industry, preventing advisers from offering advice that benefits large companies at the expense of investors.
Why Manchin, Republicans and industry oppose it
Opposition from Sen. Manchin and Republicans stems from concerns over broad definitions of fiduciary, potentially limiting access to investment advice and negatively impacting retirement savers.
The latest chapter in a decade-long fight
The rule represents the latest effort to enact fiduciary rule following a decade-long battle, indicating the ongoing struggle to regulate retirement investment advice in the US.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.