By Tim Devaney - 01/29/16 10:45 AM EST
The Obama administration is nearly done with a controversial investment advice rule for retirement accounts.
The Department of Labor sent the so-called fiduciary rule to the White House’s Office of Management and Budget (OMB) for final approval Thursday.
The fiduciary rule as proposed would raise investment standards for retirement advisers, who would be required to act in the best interest of their clients.
The Labor Department reasons this will protect retirees from purchasing expensive investment products that are more likely to benefit their advisers than themselves.
But critics say the rule would raise costs for financial advisers. In turn, they would charge more for their services, which would discourage retirees from seeking investment advice.
Republicans have challenge the fiduciary rule, thus far unsuccessfully.