All too often, financial advisors give advice based on what's best for their bottom lines, not their customers' retirement accounts. Obviously, this is a conflict of interest. Now, it's also of interest to the Department of Labor, which is concerned that "loopholes in retirement advice rules" allow advisors to put their own profits ahead of their clients' welfare by using "backdoor payments and hidden fees." The net result of this conflicted advice is often retirement investments with high costs and low returns.
President Obama has urged the Department of Labor to back a rule that would require financial advisors to "put the best interests of their clients above their own financial interests." The new rule is slated to be finalized early in 2016. Seems prudent, even a no-brainer. But special-interest groups are doing everything they can to derail it.