Critics of the Pension Protection Act, now pending in the Senate, fear that by allowing mutual fund, brokerage and insurance companies to steer workers into specific options in 401(k) plans through the guise of advice--they will only foist their own wares on them, The Wall Street Journal reports.

"Everything that has happened in the securities industry the last five years, all these scandals, at the heart of it was a conflict of interest," said David Kudla, chief executive of Mainstay Capital Management, which administers $500 million in retirement assets. "Given the regulatory track record, how can anyone think this is a good idea?"

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