White House calls for tighter rules for brokers on retirement accounts

The Obama administration is proposing new rules aimed at eliminating conflict of interests among brokers and financial advisors who manage Americans' retirement accounts and ensuring them to put their clients' best interest first instead of their own profits.

According to a statement released by the White House Monday, the proposed rules will require retirement advisors to follow a " fiduciary" standard to put their clients' best interest first, ensure investors to choose different types of advice for their retirement accounts, and allow investors to have access to retirement education.

The Department of Labor will issue a notice of proposed rulemaking in the coming months and begin a process in which it will seek public feedback on the proposal.

The rules are aimed at preventing Wall Street brokers from steering investors into retirement investments with high fees and lower returns. The White House's Council of Economic Advisers estimates investors lose as much as 17 billion U.S. dollars each year in their individual retirement accounts assets because of excessive fees and conflicted advice.

The administration first proposed a similar regulation in 2010, but withdrew it amid a Wall Street outcry. Enditem