American Council of Life Insurers (ACLI) President & CEO Dirk Kempthorne issued the following statement on the Labor Department’s fiduciary regulation.

Washington, D.C (April 18, 2017) — “In comments submitted to the Department of Labor, the American Council of Life Insurers (ACLI) calls on the department to revoke and replace its fiduciary regulation.

“As written, the regulation harms consumers preparing for retirement. Among other things, it limits consumer access to education and information about annuities, the only financial products in the marketplace that guarantee lifetime income.  

“In addition, the regulation hinders efforts by small employers to create retirement plans for their workers. Only 50 percent of workers employed in small businesses have access to a workplace retirement plan. There needs to be greater incentives for these small businesses to start and maintain retirement plans—not new barriers.

“The Labor Department needs to return to the drawing board and draft a fiduciary regulation that makes sense for America’s retirement savers and the companies and advisors committed to helping Americans address their financial and retirement security.

“America’s life insurers support reasonable and appropriately tailored regulations that require financial professionals to act in their customers’ best interest. In that spirit, the industry is prepared to work with the administration, Congress and the states on public policies that help Americans achieve their financial and retirement security goals.”

ACLI’s comment letter is available here.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 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 94 percent of industry assets in the United States. Learn more at www.acli.com.