WASHINGTON — Tapping the anxieties of aging baby boomers, President Barack Obama on Monday called for tougher standards on brokers who manage retirement savings accounts, a change that could affect the investment advice received by many Americans and aggravate tensions between the White House and Wall Street.
The Labor Department submitted a proposal to the White House on Monday that would require the brokers who sell stocks, bonds, annuities and other investments to disclose to their clients any fees or other payments they receive for recommending certain investments.
“If you are working hard, if you are putting away money, if you are sacrificing that new car or that vacation so you can build a nest egg for later, you should have the peace of mind of knowing that the advice you are getting for investing those dollars is sound,” Obama said in a speech to the AARP, the retiree advocacy group. “These payments, these inducements incentivize the brokers to make recommendations that generate the best returns for them but not necessarily the best return for you.”
The proposed rule has been the subject of intense behind-the-scenes lobbying, pitting major Wall Street firms and financial industry groups against a coalition of labor, consumer groups and retiree advocates such as the AARP.
