NAFA responds to the DOL’s proposed fiduciary rule exemption
January 19, 2017 by Elana Ashanti Jefferson
The National Association for Fixed Annuities is scoffing at a new U.S. Department of Labor proposal for letting some independent marketing organizations that distribute indexed annuities serve as financial institutions under the DOL fiduciary standard.
“This is the classic case of too little too late,” NAFA Executive Director Chip Anderson said in a statement Wednesday. “It’s too little because it comes attached with strings and conditions that still make the rule unworkable for most of the fixed annuity industry.”
The DOL fiduciary standard is set to take effect in April. If it were implemented as written, without exemptions, it would shut down indexed annuity IMOs, by prohibiting IMO sellers from earning compensation from insurers for selling indexed annuities to retirement savers.
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