BD, Insurer Groups Blast Fiduciary Plan at DOL Hearing
December 19, 2023 by Melanie Waddell
Industry trade groups told the Labor Department Tuesday during the first day of a two-day online hearing to withdraw its new fiduciary proposal, the Retirement Security Rule: Definition of an Investment Advice Fiduciary.
The Securities Industry and Financial Markets Association, which represents broker-dealers, investment banks and asset managers, and the American Council of Life Insurers were among 45 groups, some supporting the proposal and some opposing it, that requested to testify at the hearing.
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Wink’s Moore on the Market: That’s my GURL, Susan K. Neely!
The CEO of the American Council of Life Insurers – ACLI is making it known the the DOL’s rule should be withdrawn.
She told Labor officials that the rule relies on “stale data and an incomplete cost-benefit analysis and curtails access to lifetime income products.”
She contends that Labor’s rule is an attempt to “regulate sales speech is actually regulating consumer access to financial products.”
Further, she attests that the SEC’s Reg BI and the NAIC’s best-interest model “deal with the same conflicts without limiting consumer access.”
“Annuities, Neely stated, are unlike any other financial product: They are a legally enforceable promise made by an insurance company to provide monthly income throughout a person’s retirement. And unlike other financial products, an annuity provides a guaranteed income for life.”
*mic drop* -sjm