The Department of Labor's new rule on retirement security is a significant step toward ensuring that financial professionals act in the best interest of their clients. It aims to correct the flaws in the existing regulations. By focusing on the consumer and providing better advice, higher quality products, and better pricing, the insurance industry can rebuild consumer trust, expand its market over time, and ensure that retirement investors receive advice in their best interests.
In this episode of Advisor Revelations, DPL Founder and CEO David Lau talks with Micah Hauptman, Director of Investor Protection at the Consumer Federation of America. Micah has a long history of consumer advocacy in the financial services industry and has been a vocal proponent of the Department of Labor's new rule on retirement security. He leads CFA's investor protection work by advocating on investor protection issues, primarily regulating investment advisers, investment companies, and broker-dealers. Micah also restores an appropriate balance between public and private securities markets to promote investor protection, market integrity, and efficiency.
Micah talks with David about the loopholes in retirement investment advice, the impact of commissions on consumer costs, and the need for financial professionals to act in their client's best interests. They also discuss the benefits of the new rule, including improved product quality, reduced costs, and competition.
Key Takeaways
- [01:05] - How Micah got started in the investor protection industry.
- [06:12] - Micah's thoughts on the current DOL rule.
- [09:53] - Loopholes in the retirement investment advice.
- [14:03] - The evolution of retirement investment advice.
- [17:58] - How some financial professionals evade their fiduciary duties.
- [22:03] - Conflict of interest in the financial sector.
- [25:36] - The problem with certain annuity products.
- [30:51] - How the DOL's new rule impacts advisors.
- [33:10] - How the new DOL rule transforms the insurance industry.
- [36:20] - Micah's final thoughts on consumer protection.
Links
- Micah Hauptman on LinkedIn
- Consumer Federation of America
- Standards Resource Commission
- U.S. Department of Labor
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