SPRINGFIELD, Ill. — Illinois Treasurer Michael Frerichs Thursday joined U.S. Labor Secretary Thomas Perez at the Center for Economic Progress in the West Loop to discuss the impact of the new Department of Labor conflict of interest rule.
The new rule requires investment advisors to be more transparent in the investment advice provided to clients.
Prior to the release of the new fiduciary rule, many independent broker-dealers were not required to give advice that was in the best interests of their clients, nor disclose any fees that they may benefit from as a result of guiding their clients to specific investments.
The new rule requires most financial advisors to provide their clients unbiased investment advice, or disclose when decisions may not be in the best interest of the client or that investment strategy may benefit the advisor.
The new rule is expected to positively affect millions of Americans saving for their retirement.
As the Chairman of the Illinois Secure Choice Board, Illinois’ automatic retirement savings program, and a member of the Illinois State Board of Investments, Frerichs fully supports this new initiative that will bring much needed consumer protection provisions to the financial advisor industry.