Wall Street Firms Demand Complete 401(k) Advice Rule Withdrawal

A coalition of trade groups representing financial advisers, asset managers, and insurers has called on the US Labor Department to withdraw proposed 401(k) advice rules, claiming they would limit access to affordable investment options.

Industry delegates told senior Employee Benefits Security Administration officials on Tuesday that their members won’t accept any amendments or exceptions to the proposal, barring its complete withdrawal.

Their testimony, part of the first in a two-day public hearing on EBSA’s proposed Retirement Security rules package (88 Fed. Reg. 75890–76045), exposed clear division between the Biden administration’s consumer-friendly retirement agenda and Wall Street advisers committed ...