It unveiled broad strokes of a proposal Monday that would hold financial advisers handling individual retirement accounts (IRAs) and 401(k)s to a higher standard than they currently are.
The change means financial advisers would be held to a so-called fiduciary standard. Translation: They would formally have to put the best interests of their clients ahead of their own interests by recommending the best product -- even if that means taking a smaller fee for their services.
The White House acknowledged that many financial advisers already do that, but it wants to extend the standard industrywide.
"[O]utdated regulations, loopholes, and fine print make it hard for working and middle class families to know who they can trust," the White House wrote.
Related: Am I investing in too many funds?
Conflicts of interest can cost investors 1 percentage point off their return each year, the White House estimated. Over time, that can add up to a lot of money.
Nationwide, the potential losses amount to $17 billion lost every year, according to President Obama's Council of Economic Advisers.
The financial industry has been wary of the proposal.
"This proposal would lead to a number of negative consequences for individual investors, including limiting investor choice, limiting investor access to education regarding retirement accounts, and increased costs for saving," said the Securities Industry and Financial Markets Association, an industry group.
Related: Will I have enough to retire?
The president is expected to speak about the proposal Monday afternoon at the Washington offices of AARP, the retirement association.
The administration said more details would be available in several weeks when the official rulemaking process begins. It first proposed expanding the fiduciary responsibility standard to a broader category of investment professionals in October 2010.
CNNMoney (New York) February 23, 2015: 9:26 AM ET
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