Washington, D.C. (November 27, 2017) — The American Council of Life Insurers (ACLI) lauds the Department of Labor’s decision to delay provisions of the fiduciary regulation for 18 months. The delayed provisions were slated to apply January 1, 2018.
The delay will provide sufficient time for the department to complete its examination of the regulation and determine its next steps.
“The evidence before the department is clear,” said ACLI President and CEO Dirk Kempthorne. “The fiduciary regulation has harmed small and moderate retirement savers by restricting or eliminating access to retirement products and services, creating an advice gap for those most in need of help. Its bias against commission-based arrangements restricts consumer access to annuities – the only product in the marketplace providing guaranteed lifetime income.
“We agree with the department’s desire to promote coordination among regulatory stakeholders.
“Full implementation of the regulation must be delayed to allow the department, state insurance regulators, the SEC, FINRA and Congress to work in concert on reasonable and appropriately tailored rules that require all sale professionals to act in the best interest of their customers. A collaborative and harmonized approach would ensure all consumers receive retirement savings information and related financial guidance from financial professionals acting in their best interest, regardless of the retirement products they purchase.”
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.