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WASHINGTON (AP) — Republicans controlling the Senate have passed legislation to block new Obama administration rules that require financial professionals to put their client's best interest first when giving advice on retirement investments like individual retirement accounts.
The Senate passed the legislation to roll back the rules by a party-line 56-41 vote. The regulations are aimed at blocking financial advisers from steering clients toward investments with higher commissions and fees that can eat away at retirement savings.
The rules require advisers who charge commissions to sign a promise that they will act in the client's best interests, earn "reasonable" compensation and disclose information about fees and conflicts of interest. They would take effect next April.
Republicans warn the rules would establish a new fee structure that might not be worth the broker's trouble.
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