US Senator Warren probes perks offered to annuities brokers
April 28, 2015 by Sarah N. Lynch and editing by Emily Stephenson
(Reuters) – A high-profile U.S. senator said on Tuesday she launched an investigation into 15 major annuity providers amid concerns about the perks they offer to brokers who peddle the products to retirees.
Massachusetts Democrat Elizabeth Warren said she is concerned about potential conflicts of interest. She asked companies including American International Group, Prudential Annuities and Metlife for details on incentives they offer brokers who sell annuities, investment products often sold by life insurers and brokerages.
She also said certain “questionable practices” highlight the need for a strong rule by the U.S. Labor Department, which recently proposed a plan to hold brokers offering retirement advice to a higher fiduciary standard.