Quote:
Originally Posted by Obama
President Obama will order the Labor Department on Monday to begin developing new rules for financial managers who handle retirement accounts for working Americans.
The goal is to end "hidden fees that hurt consumers and back-door payments that help Wall Street brokers," said a statement from White House senior adviser Brian Deese.
|
Well, that's all well and good, but we kinda already did that 2+ years ago. See DOL Rule 404(a)5 (for participants) and 408(b)2 (for plan sponsors). The problem is, the DOL requirements were so broad that the resultant fee disclosures coming from these "financial managers" range from being so brief they don't actually tell you anything to so complex that only those with finance and legal background can draw any valuable conclusions.
So...I say lets fix what's already in place by having the DOL work with those who have implemented these existing regulations rather than layer yet another new regulation onto the retirement industry. Which, by the way, will inevitably increase costs to the participant...exactly what he's trying to avoid.
Edit: The regs I listed above were about disclosure of fees. If they're going to make certain payments illegal, I think that's trying to hit a moving target. People will find new ways to classify a fee or payment or make other arrangements so that it fits within the law. I say lets improve the disclosures and then dare the over-charging entities to try to slip one by their client. But, it's a two-way street. We, as investors and/or company owners, have to take responsibility for this stuff, learn about the industry/fees/disclosures, and be accountable to our employees.