American Council of Life Insurers (ACLI) President and CEO Governor Dirk Kempthorne issued the following remarks today on ACLI’s statement to the House Health, Education, Labor and Pensions Subcommittee hearing on the U.S. Department of Labor’s (DOL) proposed fiduciary regulation:

Washington, D.C. (December 2, 2015) — “The American Council of Life Insurers (ACLI) thanks House Health, Education, Labor and Pensions Subcommittee Chairman Phil Roe (R-TN) and Ranking Member Jared Polis (D-CO) for holding a hearing on bipartisan principles that will serve as a legislative alternative to the proposed DOL fiduciary regulation.

“ACLI believes that retirement advisors should put the best interests of their clients above their own financial interests.

“However, DOL has proposed a regulation that will restrict activities that encourage low-to-moderate-income Americans to save. It will stifle the formation of small business workplace benefit plans and will not assist savers and retirees with securing guaranteed lifetime income throughout retirement.

“Bi-partisan legislative principles by Chairman Roe and Reps. Richard Neal (D-MA), Peter Roskam (R-IL), Michelle Lujan Grisham (D-NM), Buddy Carter (R-GA) and John Larson (D-CT)offer a common-sense solution to fixing the proposed fiduciary regulation. Consistent with these principles, ACLI urges the Administration and Congress to support a legislative alternative that includes:

•  A broadly applicable best interest standard based on the DOL’s proposal, under which advice provided by financial professionals regarding investments, distributions, and rollovers would be required to be in the best interest of their ERISA plan and IRA customers.

•  A workable prohibited transaction exemption under which financial professionals would be permitted to provide investment, distribution, and rollover assistance as long as the assistance is in their customer’s best interest and the financial professional’s financial incentives are fully disclosed.

•  A seller’s exception based on the department’s 2010 proposal under which financial professionals would not be considered fiduciaries if they make it clear that they are selling products or services and not advising an investor.

•  A new rule that preserves the current-law rules regarding investment education and, as under the current proposal, extends the education rules to education provided to plan sponsors and IRA owners, and to education regarding distributions and rollovers.

“Changes are sorely needed to avoid leaving millions of Americans without the education and the advice they want and need. ACLI hopes to partner with the Administration and Congress in pursuit of a common goal—providing financial security and peace of mind for American families.”

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.