Labor Department's Perez defends proposed broker rules to Congress
Source: Reuters
BY SARAH N. LYNCH
The Labor Department secretary tried to drum up support from skeptical Republicans on Wednesday for a controversial plan to rein in conflicts by brokers who offer retirement advice, saying he believes consensus for new regulations is growing.
In a hearing before a U.S. House of Representatives panel, Labor Secretary Tom Perez struck a positive and conciliatory tone, even as the panel's top Republican urged him to withdraw the plan.
At issue are draft rules that would require brokers offering retirement advice to enter into contracts with customers that require them to act in their clients' best financial interest.
The department argues the rules are needed because brokers are currently held to a lower "suitability" standard and may recommend retirement products that boost commissions, even if they are not the best for their clients.
FULL story at link.
http://s4.reutersmedia.net/resources/r/?m=02&d=20150617&t=2&i=1057028589&w=644&fh=&fw=&ll=&pl=&r=LYNXMPEB5G1C9
U.S. Labor Secretary Tom Perez applauds remarks by President Barack Obama at the Congressional Hispanic Caucus Institute's annual awards gala in Washington October 2, 2014.
REUTERS/JONATHAN ERNST
Read more: http://www.reuters.com/article/2015/06/17/us-congress-labor-fiduciary-idUSKBN0OX1PO20150617
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