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President Obama Meets with 401k Fiduciary Rule Advocates

President Obama lends his weight to DOL's fiduciary proposal.President Obama lends his weight to DOL's fiduciary proposal.

President Barack Obama met with financial regulators Monday to give the Department of Labor’s fiduciary rule a final push before its expected passage this spring.

Bloomberg, citing White House Spokesman Josh Earnest, said unnamed participants “will discuss efforts to implement consumer financial protections and combat abusive practices by the financial industry that predated the 2008 financial crisis.”

As the news service notes for anyone living under a rock, the administration is gearing up to release a new rule that will require brokers handling retirement accounts to put their clients’ best interests first. Currently, brokers are required only to offer investments that fit a client’s needs and risk tolerance at the time of sale. The brokerage industry largely opposes the new rule.

Under the Labor Department’s proposed rule, brokers could earn sales commissions and other income if they sign a “best-interest” contract with investors to disclose fees and incentives that might influence recommendations.

“One of the key legacy achievements of this presidency will be the important reforms of Wall Street,” Earnest told reporters on Friday. “Those reforms have led to a financial system that is more stable and ensures that taxpayers are not on the hook for bailing out financial institutions that make risky bets.”

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