The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.
“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,”bureau director Richard Cordray
said in an interview. He didn’t provide additional details.
The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams, according to three people briefed on the CFPB’s deliberations who asked not to be named because the matter is still under discussion.
The retirement savings business in the U.S. is dominated by a group of companies that handle record-keeping and management of investments in tax-advantaged vehicles like 401(k) plans and individual retirement accounts. The group includes Fidelity Investments
, JPMorgan Chase & Co. (JPM)
, Charles Schwab Corp. (SCHW)
and T. Rowe Price Group Inc. (TROW)
Americans held $19.4 trillion
in retirement assets as of Sept. 30, 2012, according to theInvestment Company Institute
, an industry association; about $3.5 trillion of that was in 401(k) plans.