The Wall Street Journal reports that the Obama administration is set to unveil a final rule Wednesday that will impose new limits on how brokers offer financial advice to people saving for retirement, citing “people familiar with the matter.”
The paper says supporters of the “fiduciary rule,” including Sen. Elizabeth Warren (D., Mass.) and Labor Secretary Thomas Perez, plan to announce the landmark regulation at 11:30 a.m. at the Center for American Progress, a think tank closely allied with the Obama administration, the people said. Sen. Cory Booker (D., N.J.) also is expected to join the group.
“The regulation’s final details will be closely parsed by brokerage firms and insurance companies that could sue to try to block it from taking effect,” the Journal notes. “The American Council of Life Insurers has retained a law firm and is gathering evidence in advance of an expected court battle, according to an internal memo obtained by The Wall Street Journal.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
