Photo: Ting Shen/Bloomberg

The Biden administration on Tuesday proposed new rules for retirement plan advisors to crack down on so-called junk fees. The U.S. Labor Department’s Retirement Security Rule would require providers to sell commodities and insurance products only when it is in the customer’s best interest.

“Financial advisors should put savers’ best interests first and not sell them lower- returning products in order to maximize their own fees,” said Lael Brainard, director of the White House National Economic Council. “When a retirement saver pays for trusted advice that is actually not in their best interest and comes at a hidden cost to their lifetime savings, that’s a junk fee.”


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