Rounds Wrong On Investment Advisor Responsibility

Sioux Falls, SD (April 8, 2016)-

Responding to Senator Mike Rounds’ comments regarding new rules announced Thursday by the U.S. Department of Labor designed to protect consumers from investment advisors with conflict of interests, the South Dakota Democratic Party criticized Rounds’ focus on protecting the rich and powerful financial service industry.

“Mike Rounds proves yet again the interests of the rich and powerful trump the interests of everyday South Dakotans struggling to save for retirement. We need leadership concerned about transparency and protecting consumers, not the bottom line of stockbrokers on Wall Street,” said Executive Director of the South Dakota Democratic Party Suzanne Jones Pranger.

The new regulations limit conflict of interest violations by requiring financial advisors disclose commissions received from steering consumer investments to entities that employ the financial advisor. “The White House estimated that those conflicts of interest cost Americans $17 billion a year. Initially proposed in 2010, the rules would save a 45-year-old worker with $100,000 in retirement savings about $37,000 over the two decades before turning 65.”

“When you’re planning for retirement, your advisor should be focused first on what makes sense for your finances, not theirs,” said Pamela Banks, senior policy counsel for Consumers Union. Other consumer protection agencies such as the AARP endorsed the new regulations.

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