The new fiduciary rule announced Wednesday by the Department of Labor is a major coup for investors, said Jon Stein, founder and CEO of the robo-advisor Betterment.
"We support this rule for a lot of reasons. We've actually been engaged and involved with the Department of Labor and the OMB for awhile supporting this rule," Stein told CNBC's "Closing Bell" on Wednesday. "It's an unambiguous public good. This is one of the most exciting things to happen for investors in 40 years."
By holding investment professionals to what is called a "fiduciary standard," the rule is intended to change the way people get advice on how to invest that money.
The Labor Department, which regulates tax-advantaged savings accounts, is bringing more investment advisors under an already existing rule known as the "fiduciary standard," which requires financial advisors to put their clients' best interests ahead of their own profits.