Evidence Mounting the Regulation Harms Savers

Washington, D.C. (September 14, 2017) — The American Council of Life Insurers (ACLI) strongly supports the proposed 18-month delay of provisions of the U.S. Department of Labor’s fiduciary regulation slated to apply January 1, 2018.

A delay in the applicability date will provide sufficient time for the department to complete its examination of the regulation and determine its next steps, ACLI said in response to the department’s request for comments on the proposed delay.

Evidence is mounting that the regulation is harming retirement savers.  

“The department has sought, and has now obtained, data and evidence illustrating that the regulation is harming those it was intended to benefit. Accordingly, the department must revoke this misguided regulation and replace it with a rule that imposes reasonably tailored standards upon those engaged as fiduciaries acting in mutually agreed upon relationships of trust and confidence,” ACLI said.

“ACLI supports reasonable and appropriately tailored rules that require all sales professionals to act in the best interest of their customers regardless of whether they also serve as fiduciaries under ERISA.  However, this regulation does not accomplish these goals,” ACLI said.  

As a coordinated and harmonized regulatory approach is in the best interest of retirement savers, “it is essential that the department engage and coordinate with the Securities and Exchange Commission, FINRA and state insurance regulators.” ACLI said.

ACLI Vice Presidents, Taxes and Retirement Security James Szostek and Howard Bard, submitted the letter 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.