Wall Street Set to Fight 401(k) Advice Rule in Public Hearings

More than three dozen witnesses are set to testify on a US Labor Department proposal that would subject more financial professionals to tough fiduciary advice standards under federal benefits law.

DOL’s Employee Benefits Security Administration will host all-day hearings Tuesday and Wednesday, marking the first public clash between the Biden administration and Wall Street over the retirement advice proposal.

Fiduciary standards threaten the commissions many broker-dealers and insurance agents make for selling investment products to 401(k) participants who are cashing out their savings. Regulators say the proposed rule is necessary because advisers with conflicts of interest can steer workplace retirement ...