Industry insiders react cautiously to DOL fiduciary rule
April 7, 2016 by Arthur D. Postal
Insurers, and their trade groups in general, appear to be adopting a wait-and-see approach to the Department of Labor’s publication of its new fiduciary standard rule. However, unlike previous comments about the potential impact of the rule, none used the word “sue” to describe their reaction.
At the same time, officials of the indexed annuity industry — which analysts say will be the industry product most affected by the rule — discounted a long-term impact on annuity sales.
Specifically, Keefe, Bruyette & Woods analysts pointed out that the “one notable negative” for insurers in the rule is that indexed annuities lose their status as a solely state-regulated product through language in the bill that removes the PTE 84-24 insurance exemption and moved the product line into the Best Interest Contract alongside variable annuities.