Several volunteers from AARP delivered about 9 thousand petitions to the local offices of Senators Charles Schumer and Kirsten Gillibrand today.
They want to make sure that the representatives block any attempts to close a loophole in current rules that allow financial advisors to put their interests ahead of clients when making recommendations about retirement accounts.
Bill Armbruster is Associate State Director for AARP.
"We want to make sure that anyone that's giving you financial advice is looking out for your first and not looking at what they're going to get in terms of commissions of financial awards. We want to make sure people are aware of what the commissions are, what the hidden fees are, and that their advisor has to put their interest first, so they're not looking at gearing everyone towards one investment opportunity that provides them with the biggest commission."
Armbruster emphasizes that most advisors are doing the right thing, but a loophole in current rules allows advisors to recommend investors put their money in investments with higher risks, or rollover 401(k) savings into an IRA with higher costs and fees.
A proposal from President Obama would require fiduciary standards for financial advisors handling retirement accounts.
