As ranking members of three Congressional committees with jurisdiction over these critically important issues, we believe that's not how it should work anymore.
That is why we strongly support the Department of Labor's recently finalized "conflict of interest" proposal to update this ineffective 1975 rule. The Department's effort will help ensure that professionals abide by a fiduciary standard when giving clients retirement investment advice.
In finalizing this rule, the Department pursued an undeniably thorough, thoughtful, and transparent process. It conducted hundreds of meetings and provided the American public nearly six months to weigh in on its draft proposal. We believe the Department's product reflects the thoughtful input received during the process.
The Department's proposal will help to ensure that hardworking Americans, who conscientiously set aside money for retirement throughout their entire careers, don't outlive what they saved. These Americans may not have much experience in managing investment portfolios, so they place their faith and their financial futures in the hands of their financial advisors.
We believe it is reasonable for these Americans to have complete confidence that their advisors will not prioritize higher compensation over their best interest. That is the promise of the fiduciary standard, and it is what the Department of Labor's "conflict of interest" rule delivers.