Washington, D.C. (August 7, 2017) — The American Council of Life Insurers (ACLI) today urged the U.S. Department of Labor to revoke and replace its fiduciary regulation to prevent further harm to Americans preparing for retirement.
In its response to the department’s July 6 request for information, ACLI stated that the regulation has caused “significant market changes that now deny consumers access to advice,” since its partial implementation on June 9. Its overly broad definition of a fiduciary inappropriately applies to ordinary sales and marketing activities and “constrains education and information about retirement planning options.”
The regulation’s bias against commission-based compensation arrangements has already restricted access to annuities, the only product available in the marketplace providing guaranteed lifetime income, ACLI said.
ACLI also strongly advised the department to coordinate with the Securities and Exchange Commission and state insurance regulators. “A coordinated and harmonized regulatory approach is necessary and in the best interest of retirement savers,” ACLI said.
The department is examining the regulation as directed by the president’s February 3, 2017 memorandum. ACLI had already submitted comments on July 21 seeking a one-year delay in the January 1, 2018 implementation date for the remaining aspects of the regulation while the department completes its examination.
James Szostek and Howard Bard, ACLI vice presidents, Taxes and Retirement Security, submitted the comments on ACLI’s behalf.
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 state, federal, 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 95 percent of industry assets in the United States. Learn more at www.acli.com.