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President Obama proposed tougher regulations on investment brokers who handle retirement funds, saying it is time to curb hidden fees, "backdoor" payments and conflicts of interest that can cost middle-class Americans tens of thousands of dollars in retirement savings.

Diving into another likely clash with a Republican-led Congress, Obama on Monday billed his proposed rules a revival of an effort quashed amid industry opposition four years ago as part of his renewed focus on a populist economic message.

He dished out tough criticism of financial advisors who are "bilking" clients for their own benefit and selling "snake oil." He delivered the message while standing with consumer advocates, retirees and Sen. Elizabeth Warren (D-Mass.), a favorite among liberals for her efforts to reform the financial system.

"We've got a lot more work to do to make sure the recovery reaches every single American out there and not just those at the top," Obama said in remarks delivered at the headquarters of seniors advocacy group AARP.

The proposed rules, which the administration can enact without congressional approval, would require some financial advisors to act as what the law calls fiduciaries for their clients. That would require them to put the client's interests ahead of other factors, such as their own compensation or company profits, when recommending or selling investments.

The reforms, long backed by many consumer groups, are designed to crack down on advisors who steer investors to products that provide hidden payments or generate higher fees for the advisor but do not necessarily provide the best returns.

Currently, advisors are required to recommend "suitable" investments for clients, but that standard leaves considerable room for abuses, according to consumer advocates.

A report released Monday by Obama's Council of Economic Advisors estimated that investors receiving "conflicted advice" earn lower returns by roughly 1 percentage point a year than other investors.

That adds up to roughly $17 billion in lost returns in individual retirement accounts each year, the report said. Over time, the losses can build to tens of thousands of dollars for the average worker.

Financial services industry officials disputed those estimates and said new rules would require changes to their compensation structure that would undermine their business model. Professional guidance would become more expensive and out of reach for average investors, they warned.

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Obama proposes tougher rules for retirement fund advice