SEC Must Tame the Wolves of Wall Street

From the AFL-CIO

Future retirees stand to lose one-quarter of their retirement paychecks because of corrupt financial advice.

Advocates have been fighting for decades to close a loophole that allows investment brokers to give self-serving advice. On Wednesday the Securities and Exchange Commission proposed a new rule that doesn’t go far enough to protect the interests of working people. The SEC should go further and require brokers to act with integrity.

A new proposed rule on investment advice would leave working people vulnerable to bad actors on Wall Street, and the AFL-CIO will fight for a stronger rule before it’s finalized or demand it to be scrapped altogether.

“Does this proposal require financial professionals to put their customers’ interests first, and fully and fairly disclose any conflicting interests? No,” said SEC Commissioner Kara Stein, explaining why she voted against the proposal.

“Americans deserve a clear best-interest rule that places the client’s needs ahead of the broker’s. Period,” said fellow Commissioner Robert J. Jackson Jr., who’s fighting to improve the proposal.

Working people want new economic rules that stop investment brokers from skimming our savings, so more working people can have a secure retirement.