Stricter rules unveiled for brokers giving retirement advice

WASHINGTON (AP) — The Obama administration is unveiling rules that will require that brokers who recommend investments for retirement savers meet the stricter standard that now applies to investment advisers:

The government action will put brokers — who sell stocks, bonds, annuities and other investments — under the stricter requirements that now apply to registered financial advisers.

The new rules were the target of heated lobbying campaigns mounted by both the financial industry and consumer advocates.

Americans increasingly seek financial advice to help them navigate an array of options for retirement, college savings and more.

Susan Bernardo says her broker put her in energy and real estate partnerships without telling her about the risks or the fat 5 percent commission that brokers typically earn on such deals.

In 2012, David Lerner Associates was fined $12 million by regulators for putting unsophisticated and elderly investors into risky real estate investment trusts.