Des Moines, Iowa – The Iowa Insurance Division today filed proposed regulations to require annuity agents and securities agents to act in the best interest of their customers.  These standards ensure consumer’s interests are put first.

This follows efforts by the National Association of Insurance Commissioners (NAIC) to develop a model Suitability in Annuity Transactions Model Regulation that is harmonized with rulemaking by the U.S. Securities and Exchange Commission (SEC). 

Iowa Insurance Commissioner Doug Ommen, who is also the state’s securities regulator, offered the following comments.

“I was proud to help lead the NAIC’s effort as we worked toward a harmonized ‘best interest’ standard with the SEC for broker-dealers and agents that makes sure the consumer’s interests are put first.” 

“Our experience in Iowa has proven that varied advisory models offer incredibly valuable consumer access to retirement education and security.  Iowans choose professional financial services either through fee arrangements or through transactional commission arrangements based on their particular needs.  Requiring high quality financial advice that fits the particular needs, objectives and situation of the individual Iowan has always been our primary purpose.  This model regulation will preserve consumer choice so that many more middle class Iowans will retain access to retirement education and security that they choose.”

“I’m very pleased that we were able to propose a detailed regulatory framework that promotes informing consumers about risks, benefits and costs of any recommended transaction.  I look forward to other states joining with us in this effort to protect consumers.”

Deputy Administrator for Securities Andrew Hartnett added the following comments.

“This standard requires the financial professional to always put the consumer’s interest first and to only make recommendations that match the particular Iowan’s needs, objectives and situation.  This proposal is consistent with the efforts of the SEC and will be very beneficial to consumers.” 

Click here to view the proposed regulation.