The Department of Labor (DOL) recently released a rule proposal that would strengthen protections for retirement savers who seek professional investment advice. The current rules need to be modernized to close loopholes that allow investment professionals and firms to put their own financial interests ahead of retirement investors’ best interests. They may steer retirement savers into products, services, or account types that maximize their own revenues but come with excessively high costs, poor performance, unnecessary risks, or illiquidity, jeopardizing retirement savers’ financial security. Conflicts of interest among many investment professionals and firms take a huge toll on the ability of millions of workers and retirees to have a financially secure and dignified retirement.

The DOL’s proposed rule would close the current regulatory loopholes to ensure that all investment professionals provide advice that is in retirement savers’ best interest and that any conflicts of interest do not taint their advice. This “best interest” standard would apply across the board: to any investment professional advising on retirement accounts for any recommended investment product.