HONOLULU (HawaiiNewsNow) - The House tried to block a new regulation to make financial advisors do their job. They fell 40 votes short of getting the necessary two-thirds. The new rule, issued by the Labor Department, is an astonishing one. It requires financial advisors to act in the best interests of their clients. Sounds like belaboring the obvious. But under the old rules, financial advisors were NOT required to act in your best interests. They could act in their OWN interests, recommending investments that would net THEM more money. As long as you made SOME profit it was legal, even if another option would make you more.
How self-dealing do you have to be, to say with a straight face that the old rule was okay?
But that's exactly what lobbyists for financial advisors argued. And 239 members of the House voted the way the lobbyists wanted. They did get a majority. They just didn't get the required two-thirds.