ACLI Comments Seek to Protect Consumer Choice, Access to Professional Guidance

WASHINGTON – The American Council of Life Insurers (ACLI) raised concerns today with the Department of Labor over its fiduciary proposal in comments seeking to protect consumer choice and access to guidance that best suits consumers’ needs.

“[I]t is critical that consumers retain access to both fiduciary and non-fiduciary services,” ACLI said in its comment letter. “We are concerned that the Department’s commentary in the preamble to the Notification of Proposed Class Exemption could be understood to broadly impose fiduciary obligations in a manner similar to the Department’s 2016 fiduciary regulation. Before it was vacated by the Fifth Circuit Court of Appeals, this fiduciary-only approach restricted access to professional guidance that retirement savers with low and moderate balances want and need. We have concerns that such consumer choice may be at risk again.”

ACLI urged the Labor Department to clarify its commentary in light of the Fifth Circuit ruling. ACLI’s comments also seek to further harmonize the proposed exemption with the Securities and Exchange Commission’s Regulation Best Interest and the National Association of Insurance Commissioners newly revised Suitability in Annuity Transactions Model Regulation. A harmonized approach would ensure all financial professionals act in the best interest of retirement savers while preserving consumer choice and access.

ACLI's letter to the Labor Department is available here. 

The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 280 member companies represent 94 percent of industry assets in the United States.

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