February 03, 2017

Sen. Warren Releases Report on Financial Adviser Conflict-of-Interest Rule Threatened by Trump Administration

Rule Protects Families by Barring Kickbacks to Retirement Advisers; Puts $17 Billion Back into Consumers Pockets

A PDF copy of the report is available here

Washington, DC - U.S. Senator Elizabeth Warren today released a report detailing the kinds of prizes and kickbacks currently offered to retirement advisers for selling certain financial products, regardless of whether those products are in the best interest of consumers. A new Department of Labor (DOL) rule to prevent these conflicts of interest is scheduled to take effect in April 2017; however, President Donald Trump plans to issue a memorandum today that would delay its implementation.

"The Labor Department's Conflict of Interest Rule will end the kinds of kickbacks and incentives that put families' retirement savings at risk," Senator Warren said. "The DOL rule protects consumers and creates a level playing field in the market for financial advisers who want to do right by their clients. Instead of doing favors for the big bank CEOs he invited to the West Wing this morning, President Trump should stand with working families by protecting this critical rule."

The report issued by Senator Warren's office today shows that kickbacks in the financial industry - particularly in the annuities industry - remain widespread, and that the DOL Conflicts-of-Interest Rule will eliminate the worst of these industry kickbacks. Today's report follows up on an earlier 2015 investigation by Senator Warren into conflicts of interest in the annuities industry.

A PDF copy of today's report is available here.