
	March 25, 2009 Rep. Andrews Highlights Previous Administration's "Midnight" Regulation that Could Put Americans' Retirement Security at Risk WASHINGTON, D.C. – This week, Congressman Andrews held a hearing on the importance of protecting workers from conflicted investment advice and providing them with access to qualified independent investment advice. During the Health, Employment, Labor and Pensions Subcommittee hearing, Chairman Andrews highlighted the Bush Administration's "midnight" regulation that would have made it easier for financial services firms to offer potentially conflicted advice for workers' retirement accounts. Specifically, this regulation could create an opportunity for financial advisers to profit from their own advice, while contributing employees bear the burden. "If workers receive investment advice, it should be independent and free of conflicts of interest," said U.S. Rep. Rob Andrews (D-NJ), chairman of the subcommittee. "During a time where American workers have already lost $2 trillion in assets due to last year's market downturn, exposing their hard-earned retirement savings to greater risk by allowing advisers to offer them conflicted advice is irresponsible and imprudent." The U.S. Government Accountability Office found during an investigation conducted by the Security and Exchange Commission in 2005 that defined benefit retirement plans with significant undisclosed conflicts of interest could quite possibly lead to lower returns than those that exercise proper disclosure. During these difficult economic times Americans are concerned more than ever about their financial future. It is vital that workers receive the best possible information concerning their retirement savings and therefore not become victims of investment advice motivated by self-interest. The regulation has been put on hold by the Obama administration. For more information and a webcast of Tuesday's hearing, visit: http://edlabor.house.gov/hearings/2009/03/retirement-security-the-import.shtml Return to the Washington Updates Page

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