Fiduciary Rule

ACLI Position

As currently written, the Department of Labor’s fiduciary regulation limits retirement savers’ access to education and information about retirement solutions like annuities, the only financial products in the marketplace that guarantee lifetime income.

Our objective since the department first proposed the fiduciary regulation in April 2015 has been to work cooperatively with the department to ensure its final rule protects consumers without harming their ability to obtain the financial and retirement security advice they want and need.

During the department’s rulemaking effort, ACLI made clear that the regulation would not serve the best interests of consumers as it would result in:

•    Less access to investment advice and education for low- and middle-income savers and retirees;
•    Limited investor choice and consumer access to all investment services—such as proprietary products, commission-based sales and annuities, the only financial products in the private marketplace that guarantee lifetime income;
•    Reduced small business owners’ access to information and products they need to establish and maintain retirement plans and help workers save for retirement.

ACLI welcomed the President's memorandum on February 3 that directed the Secretary of Labor to examine the regulation to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. Any objective analysis would conclude that the regulation will have a harmful impact on investors due to a reduction in access to retirement product structures, retirement savings information and related financial advice. The path forward is clear. Any regulation that makes it harder for Americans to obtain the financial products and services they want and need should return to the drawing board.

America’s life insurers support reasonable and appropriately tailored regulations that require all sales professionals to act in their customers’ best interest. The fiduciary regulation unfortunately does not meet this standard. ACLI is encouraging collaboration between the Labor Department, the Securities and Exchange Commission, the states and Congress to develop comprehensive public policy solutions that help Americans meet their financial and retirement security goals.

Publications & Resources

ACLI Motion for an Injunction Pending Appeal, 03/11/2017

ACLI Notice of Appeal, 02/28/2017

Hearing Transcript, 11/17/2016

ACLI Reply Brief, 09/16/2016

ACLI MSJ Brief, 07/08/2016

ACLI/NAIFA Legal Challenge to DOL Fiduciary Rule, 06/08/2016

Letters of Interest

ACLI Statement for the Congressional Record Calling on DOL to Issue a Further Delay of the Fiduciary Regulation, 05/18/2017

Sen. Ron Johnson (R-WI) letter to DOL Secretary Acosta, 05/12/2017

House GOP members letter to DOL Secretary Acosta, 05/02/2017

Senate HELP Committee GOP members letter to DOL Secretary Acosta, 04/28/2017

ACLI comments to DOL regarding examination of fiduciary rule described in President's memorandum, 04/17/2017

GOP members of House Education & Workforce Committee letter on fiduciary to DOL, 04/17/2017

ACLI letter to DOL regarding proposal to extend applicability date of fiduciary rule, 03/13/2017

ACLI President and CEO letter to Speaker Ryan on H. J. Res. 88, which disapproves the fiduciary rule, 04/26/2016

Rep. Gwen Moore's (D-WI) Letter to Office of Management and Budget Regarding Proposed Fiduciary Rule, 03/04/2016

House Democrat Letter to Office of Management and Budget Regarding Proposed Fiduciary Rule, 02/09/2016

Rep. Jared Polis's (D-CO) Letter to Office of Management and Budget Regarding Proposed Fiduciary Rule, 02/02/2016 

Secure Family Coalition letters expressing support for H.R. 4293 and H.R. 4292: letter (PDF) to House Education and the Workforce Committee; and letter (PDF) to House Committee on Ways and Means, 02/01/2016 

Dear Colleague letter announcing bi-partisan principles on fiduciary, 11/05/2015

ACLI submits supplemental letter to the Department of Labor regarding the administration's proposed fiduciary rule, 09/24/2015

House letter to Secretary Perez regarding fiduciary rule, 09/24/2015

National Conference of Insurance Legislators (NCOIL) letter, 07/28/2015

ACLI comment letter to DOL regarding the fiduciary rule (Note: 18 MB File), 07/21/2015

Center for Capital Markets Competitiveness letter, 07/21/2015

ACLI President and CEO Governor Dirk Kempthorne letter to Sens. Mike Crapo (R-ID) and Sherrod Brown (D-OH), 07/13/2015

Other Materials

ACLI President and CEO Dirk Kempthorne commends SEC Chairman Jay Clayton for taking steps to reexamine standards of conduct (June 2017)

Amicus brief filed in the ACLI/NAIFA consolidated fiduciary litigation appeal by the Washington Legal Foundation (May 2017)

[VIDEO] ACLI Pres. and CEO's mention of the fiduciary rule during the 2016 National Governors Association Winter Meeting (February 2016)

U.S. Chamber Infographic: The Threat to Small Business Retirement Savings (July 2015)

U.S. Chamber Report: Proposed DOL Fiduciary Rule Could Impact 9 Million Small Business Households (June 2015)

NERA Study Released on DOL Retirement Regulation (March 2015)