NAIFA dissatisfied by “unlucky” OMB choice

The Nationwide Affiliation of Insurance coverage and Monetary Advisors (NAIFA) shouldn’t be joyful in regards to the newest transfer by the White Home Workplace of Administration and Finances (OMB) in regards to the Division of Labor’s (DOL) revived fiduciary-only rule.

In an announcement, NAIFA chief govt Kevin Mayeux, CAE (pictured), asserted: “The Nationwide Affiliation of Insurance coverage and Monetary Advisors is dissatisfied that the White Home Workplace of Administration and Finances has concluded its evaluation of the Division of Labor’s fiduciary-only rule that may restrict the choices of many American customers searching for merchandise and help as they put together for retirement.

“Whereas we admire that NAIFA was capable of current lots of our considerations in regards to the rule in a gathering with OMB’s Workplace of Info and Regulatory Affairs (OIRA)… it’s unlucky that OMB determined to advance this rule so rapidly, even whereas OIRA nonetheless has conferences with extra stakeholders scheduled.

“White Home officers’ lack of engagement throughout our conferences with them and rush to finish the OIRA evaluation gives the look that the administration is rubber-stamping this rehashed proposal and never contemplating the intense penalties it should have for the American public.” 

This morning, on behalf of @NAIFA and our members from coast to coast, I testified earlier than the @WhiteHouse‘s @OMBPress in regards to the extremely dangerous impacts the @USDOL‘s proposed remaining fiduciary-only rule would have on low and middle-income American households & small companies.…

— Kevin Mayeux (@KevinMayeux) April 10, 2024

Mayeux confused that the rule is a revival of the failed fiduciary-only mannequin that will not solely restrict customers’ decisions but additionally curtail the entry of many Individuals to retirement services and products.

“That is the fourth time since 2010 the federal authorities has tried to increase fiduciary necessities for monetary professionals,” the CEO famous. “This DOL proposal is especially unlucky, coming at a time when many Individuals are involved about their financial safety and skill to organize for retirement.

“NAIFA is especially dissatisfied that DOL is making an attempt to saddle customers with a further layer of laws when the acknowledged targets of the proposed rule are already being achieved by the Securities and Alternate Fee’s Regulation Finest Curiosity and state measures primarily based on the Nationwide Affiliation of Insurance coverage Commissioners’ mannequin greatest curiosity regulation for annuity transactions, each of which give sturdy client protections and require monetary professionals to work in purchasers’ greatest pursuits.”

Mayeux additionally expressed NAIFA’s dedication to pursuing non-regulatory technique of defending customers from the rule’s penalties.

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