(Bloomberg) -- The White House plans to throw its full weight behind a Department of Labor proposal to make it harder for brokers to push higher-fee mutual funds or other expensive products on people saving for life after work. The plan would require brokers to act in a customers best interest, a change that could limit the earnings of financial advisors.
President Obamas expected involvement Monday underscores the opposition the government faces in revising 40-year-old rules that affect tens of millions of baby boomers nearing retirement and younger workers without pensions. Having beaten back previous efforts to update the rules, Wall Street now has more at stake. Banks have boosted their asset-management businesses after the 2008 financial crisis, while curtailing riskier and more capital-intensive trading units.
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