(Bloomberg) — President Barack Obama on Monday threw the weight of the White House behind an effort that would make it harder for brokers to push higher-fee mutual funds or other expensive products on people saving for retirement.
The Labor Department plan would require brokers to act in a customer's best interest, a change that could limit the earnings of financial advisers in the handling of Americans' $11 trillion of retirement savings.
The president said the current regulations are out of date, devised in the era when most Americans could count on a traditional pension from employers. Through self-directed retirement accounts, some brokers are skimming significant sums annually from small investors, he said.
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