A Split Over Protecting Investors

The Obama administration wants the Department of Labor, which oversees employee savings plans such as 401(k)s, to propose sweeping regulations that would curb conflicts of interest among brokers who handle investments for people saving for retirement. The Securities and Exchange Commission has long considered imposing similar rules on all brokers but so far shows no sign of enacting them. At issue is whether brokers should adhere to a fiduciary standard—which would require them to put clients’ interests ahead of their own. Looser rules, now in effect, only require them to recommend investments that generally fit clients’ needs and tolerance for risk. Investment advisers are already bound by the fiduciary rule. More on Bloomberg here.