AARP Responds to President Obama’s Speech on Wall Street

New AARP Survey Shows Support For Increased Consumer Protections in Financial Industry

September 14, 2009 -- Washington, DC – AARP Executive Vice President, Nancy LeaMond released the following statement in response to President Obama’s speech today on Wall Street:

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“Older Americans saw their retirement savings decimated by the economic crisis. AARP has long maintained that consumers must be armed with as much information as possible so that they can make sound financial decisions. In a world where individuals must plan for their own financial futures, information is imperative and greater protections are needed in the marketplace.

“AARP supports the creation of a Consumer Financial Protection Agency that would advocate on behalf of consumers’ needs in the financial marketplace. It is important that individuals know they are buying products and getting financial advice from industry certified advisors. It is important that when individuals buy a product that has been recommended to them it is the right product for their needs.

“In a recent AARP survey, 95 percent of people 25 years and older believe in having investment services firms increase their transparency around the costs, risks and benefits of all financial products they offer. The same number of individuals believe companies that manage 401(k) plans should be required to clearly explain their fees on participant’s annual statements. AARP has long advocated for transparency in 401(k) plans, having known that the majority of investors are unaware of the fees associated with their retirement savings.

“Similarly strong support exists for providing consumers with information on how to monitor their investment advisors and report possible professional misconduct (89 percent), and allow them to check their investment advisor’s record (93 percent). Finally, 69 percent believe in only permitting investment firms to sell products that are suitable for the needs, objectives, and risk tolerance of their consumers.

“AARP looks forward to working with Congress and the Administration to protect consumer’s financial well-being and to improve the economic security of American families.”

Source: AARP