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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