Insurance Associations Applaud Congressional Action On Fiduciary Regulation
May 21, 2024 by ACLI
WASHINGTON – The American Council of Life Insurers (ACLI), National Association of Insurance and Financial Advisors (NAIFA), Finseca, Insured Retirement Institute (IRI) and National Association for Fixed Annuities (NAFA) issued the following statement on the Congressional Review Act (CRA) resolution to prevent the Labor Department’s fiduciary regulation from taking effect:
“The actions today by Rep. Rick Allen (R-GA) and Sens. Ted Budd (R-NC), Bill Cassidy (R-LA), Roger Marshall (R-KS) and Joe Manchin (D-WV) are necessary to safeguard retirement savers from the harmful effects of the Labor Department’s fiduciary-only regulation.
“If allowed to stand, the regulation will have the same consequences for lower- and middle-income savers as the 2016 failed regulation it is modeled after. More than 10 million small retirement account owners with more than $900 billion in savings lost access to their financial professionals before a federal court struck it down.
“Further evidence shows that the regulation will deprive retirement savers of choice and access to professional assistance and products they want and need, including annuities, the only product in the marketplace that can provide retirees guaranteed income for life. It also will increase costs and burdens for financial professionals and their clients.
“This disruption to retirement savers is unnecessary given recent measures taken by state and federal policymakers. Since 2020, 45 states have adopted enhanced protections for annuity consumers by adopting the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation. These new laws and regulations also align with the SEC’s Regulation Best Interest, greatly enhancing the state and federal standards financial professionals must follow when recommending annuities. Unlike the Labor Department’s approach, they also safeguard consumers while preserving their access to information about annuities.
“For these and other reasons, we urge Congress to pass the CRA resolution and halt the implementation and enforcement of the Labor Department’s harmful regulation.”
Read the letter signed by multiple organizations supporting the CRA resolution. Also read the statement from the CRA resolution sponsors.
About ACLI: The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 275 member companies represent 93 percent of industry assets in the United States.
About NAIFA: Founded in 1890, NAIFA is the oldest, largest and most prestigious association representing the interests of financial services professionals from every Congressional district in the United States. Our mission – to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members – is the reason NAIFA has consistently and resoundingly stood up for financial services professionals and called upon members to grow their knowledge while following the highest ethical standards in the industry.
About Finseca: At Finseca, we know that financial security improves people’s lives and protects their livelihoods and future wellbeing. We are rising to the challenge of increasing financial security for all. Finseca represents the men and women of the financial security profession who dedicate themselves to delivering financial security to their clients every day.
About IRI: The Insured Retirement Institute (IRI) is the leading association for the entire supply chain of insured retirement strategies, including life insurers, asset managers, broker-dealers, banks, marketing organizations, law firms, and solution providers. IRI members account for 90 percent of annuity assets in the U.S., include the foremost distributors of protected lifetime income solutions, and are represented by financial professionals serving millions of Americans. IRI champions retirement security for all through leadership in advocacy, awareness, research, and the advancement of digital solutions within a collaborative industry community. Learn more at www.irionline.org.
About NAFA: NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel about the value of fixed annuities and their benefits to consumers. NAFA’s membership represents every aspect of the fixed annuity marketplace covering fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998. For more information, visit www.nafa.com.
