DOL rule: Expect changes to products, distribution & compensation
April 11, 2016 by Warren S. Hersch
With the Department of Labor’s much anticipated conflict-of-interest or fiduciary standards now finalized, industry stakeholders are offering varying assessments on the regulatory impact. Among the prognosticators: Fitch Ratings.
The international credit ratings agency stated in a comment letter issued shortly before publication of the finalized regulations that it expects changes to product offerings, distribution strategies and compensation structures. The new rules, Fitch asserts, will also lead to increased operational costs for insurers and advisors endeavoring to comply with the new standard.
To gain greater insight into Fitch’s assessment, LifeHealthPro Senior Editor Warren S. Hersch spoke with Doug Meyer, the organization’s managing director for life insurance. As the interview took place before the regulations were finalized, it did not touch on fixed index annuities, which the best interest contract standards now also encompass.
