WASHINGTON — President Barack Obama has vetoed legislation designed to nullify Obama administration rules that will require financial professionals to put their client’s best interest first when giving advice on retirement investments.
Obama says that some firms have steered clients into products that had higher fees and lower returns, which he says costs families about $17 billion a year.
Republicans say the regulations will make it more expensive for smaller businesses to provide retirement savings plans to their employees, resulting in less advice and fewer choices for many consumers.
Under the “fiduciary rule,” advisers who charge commissions will be required to sign a promise to act in the client’s best interest and disclose information about fees and conflicts of interest.
The rule will take effect next April.