NAIFA chief thanks lawmakers for move against fiduciary-only rule

NAIFA chief thanks lawmakers for move against fiduciary-only rule | Insurance Business America

Insurance News

CEO writes legislators to commend their leadership on the issue

Insurance News

By
Terry Gangcuangco

The National Association of Insurance and Financial Advisors (NAIFA) has endorsed a Congressional Review Act (CRA) resolution to overturn the Department of Labor’s (DOL) new fiduciary rule, which NAFIA argues could place undue burdens and costs on middle- and low-income savers as well as professionals in the financial services sector.

NAIFA chief executive Kevin Mayeux (pictured) expressed his gratitude in letters to Representative Rick Allen and Senators Joe Manchin, Ted Budd, and Bill Cassidy, who have spearheaded the resolution in both chambers of Congress.

Mayeux told the legislators: “NAIFA applauds your efforts to bring the CRA resolution to the floor…”

The CEO had previously cited the DOL rule as a revival of the failed fiduciary-only model that would not only limit consumers’ choices but also curtail many Americans’ access to retirement products and services.

In a new statement this week, he said: “The Department of Labor failed to learn its lesson when its very similar 2016 fiduciary-only rule failed in the face of a lawsuit brought by NAIFA and others. The current rule will harm the very people the DOL claims to want to protect – low- and middle-income savers – by depriving them of retirement-planning products and services.

“Financial professionals are required by the SEC’s Regulation Best Interest and annuity-transaction rules and laws in place in 45 states to serve consumers’ best interests. The DOL has decided to ignore these robust protections and impose an additional layer of restrictions on consumers and financial professionals.

“We thank Representative Allen and Senators Budd, Cassidy, and Manchin for their leadership and urge Congress to adopt the CRA resolution.”

Industry organizations such as the American Council of Life Insurers, Finseca, Insured Retirement Institute, and the National Association for Fixed Annuities also support the resolution.

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