This week, the attorneys at Malecki Law sent letters to several United States Senate and House of Representatives members, urging them to support the Department of Labor’s (DOL) proposal to hold financial advisors to a higher standard and act in the best interest of retirement investors. These members of the Congress include the Honorable Charles E. Schumer, the Honorable Jerrold Nadler, and the Honorable Kirsten E. Gillibrand.
Millions of Americans have worked their whole life to build a retirement nest egg and count on their retirement savings to support them through their golden years. The DOL’s proposal addresses loopholes in the current rules that make it far too easy for some advisers to take advantage of these hard-working Americans and line their own pockets with retirement savings. Our system is so broken that brokers often can and do put their own interest in commissions above the interests of their clients, causing them to be in unsuitable products just so the broker could earn additional commissions.
When someone turns their life savings over to someone for advice, they believe their financial adviser is going to do what’s best for them. We have never heard a client recount a story of a financial advisor that told them that they are not fiduciaries, in fact, we hear just the opposite. We all see the advertisements on television that say the financial advisers are there to help us, but we need to know that financial advisers are obligated to put client interests first, as well as be able to receive that assurance in writing.
Managing the retirement savings often involves complex financial decisions, decisions that cannot and should not be made without proper, fiduciary guidance. While people spend time away from their families, sacrificing to save for the future, their busy lives do not permit the average investor to become a knowledgeable expert in the stock market while tending to children and grandchildren, working, managing their homes and paying their bills every day. Everyone knows this to be true.
We are reaching out to the Senate to close these loopholes and ensure a high standard that holds anyone who gives financial advice genuinely accountable for helping everyday Americans choose the best retirement investments for them, their families, and their future — not just the ones that make their brokers and bankers richer.