The NY Times reports that “brokers are not necessarily required to act in their customers’ best interest, even if they are advising on their retirement money. While that would seem to be a basic consumer protection, in Washington and on Wall Street it has proved to be wildly contentious.”

The article describes an effort by the Labor Department to amend ERISA, which outlines when investment advisers become fiduciaries — the eye-glazing legal term describing brokers who must put their customers’ interests first. The rules are stricter for fiduciaries who handle consumers’ tax-advantaged retirement money compared to fiduciaries under federal securities law.

 

 

 

via Brokers Fight Rule to Favor Best Interests of Customers – NYTimes.com.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.