In an ironic twist in the strung-out saga behind the Labor Department’s fiduciary rule, a leading consumer group is calling on regulators to investigate the migration of retirement savers to fee-based advisory accounts.

The Consumer Federation of America, a prominent proponent of the fiduciary rule, has sent a letter to the Secretary of Labor, the Commissioner of the Securities and Exchange Commission, and the President of FINRA, alleging that some brokerage firms may be using the rule to shift customers to fee-based accounts even when it is not in investors’ best interests.

“We cannot dismiss out of hand the possibility that some firms are using the rule as an excuse to shift customers into fee accounts, even when that is not the best option for the investor, or charging them unreasonable fees as a result,” CFA’s letter says

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.