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SACRAMENTO, June 7, 2019 – California Attorney General Xavier Becerra issued a statement denouncing the Securities and Exchange Commission’s (SEC) vote approving new rules that would leave consumers who are saving for retirement vulnerable to unscrupulous financial advisors. The SEC vote yesterday put into place new rules that significantly weaken standards for investment advisors and allow financial professionals to collect compensation incentives for directing savers toward investments that are not in the client’s best interests. The proposed rules, including the so-called Regulation Best Interest, are an inadequate replacement for the Department of Labor’s 2016 Fiduciary Rule. That rule enshrined into federal law commonsense standards for professionals who give retirement advice, which would save consumers tens of billions of dollars.
“Americans already face enough obstacles when it comes to retirement security. But with their decision, the SEC has callously erected another hurdle,” said Attorney General Becerra. “These new rules are little more than window-dressing and will only empower brokers looking for profit at the expense of those saving for retirement. Just a decade ago, millions had their savings wiped out or threatened because of the irresponsibility of Wall Street, and it seems as though the SEC is determined to repeat history.”