Industry Reaction to Obama’s Push for Fiduciary Standard

[Brian Anderson]

NAIFA and the Financial Planning Coalition were among the industry organizations quick to respond in opposition and support of President Obama’s push for a universal fiduciary standard. You can check out their comments in this new article (link below), and please feel free to add your own two cents on this thread.

Insurance Forums | NAIFA, Financial Planning Coalition quick to respond to Obama comments on tougher standards for brokers

 

[somarco]

Speaking of ROI ........

What kind of return on my SS funding do I get if I die the day after I begin my SS benefits?

Or say I live a couple of years. After paying into SS for roughly 40 years do my heirs get a refund of the monies I have paid?

How long do I have to live after FRA to break even on my "contributions" vs payout?

How much money does AARP make in "backdoor payments and hidden fees" from carriers that offering products for retirees and are "endorsed" by AARP?

 

[nylife11023]

I have no problem with full-disclosure of marketing-agreement fees (some call them kickbacks) as well as putting everyone in the financial industry under the fiduciary standard.

I read the NAIFA argument and find it specious at best. They make claims but they don't illustrate them with any facts or even near facts... or even fabrications.

I think that the so-called Financial Planning Coalition makes a better argument.

I've never understood why the insurance industry is against the fiduciary standard since the majority of agents conduct their business to that standard already.

At the end of the day this will be between the big carriers and the government and just as in PPACA, agents are going to get screwed no matter what.

Also, the wave of the future for financial product and service delivery to the less-affluent (ie. middle class) is the internet leaving a small 'pie' of wealthy individuals for the large agent sector to carve up... it will result in a true Darwinian 'state.'

I can see a where there would be public acceptance of disclosure and a better standard because many people look at "Wall Street" and believe that the current standard is where:

"Fair is foul, and foul is fair."
- Shakespeare Macbeth: Act 1, Scene 1

 

[Enosis]

I wonder if he would trust a government employee to roll over his 401K?

 

[moonlightandmargaritas]

I read the NAIFA argument and find it specious at best. They make claims but they don't illustrate them with any facts or even near facts... or even fabrications.

Most NAIFA chapters are filled with a lot of nincompoops...

 

[ktmorgan]

"bout time gotdamn time.

 

[Brian Anderson]

NAFA just released this statement on the issue:

FOR IMMEDIATE RELEASE: February 27, 2015

NAFA DOL Fiduciary Duty Proposal Response

WASHINGTON, D.C. - On Tuesday, February 24, 2015, NAFA issued an email alert regarding news from the White House that the Department of Labor (DOL) plans to move forward with a revised fiduciary rule proposal. Below is NAFA's official response to these events:

NAFA strongly urges caution as the Department of Labor moves forward with its proposed rule changing the definition of "fiduciary" under ERISA. While it is laudable to stop bad actors, we are concerned about the potential adverse impacts of the proposal on consumers, small businesses and IRAs. DOL's recent statement that many financial services professionals care more about their personal compensation than the needs of their clients runs contrary to our members' professionalism, existing robust regulation and consumer satisfaction rates. While the specific details of the revised proposed rule are not known, commentary from the DOL, along with changes that were proposed in the 2011 withdrawn rule, suggest that the DOL is advocating an onerous, one-size-fits-all approach that will unquestionably have harmful consequences. We must preserve consumer access to investment education, product choice and affordability.

NAFA and our fellow industry trade groups will be monitoring this issue closely. We will respond to developments as they occur in a manner consistent with protecting the best interests of our membership and the industry as a whole. We will keep you apprised of any involvement requested in the weeks to come.

ABOUT NAFA:
NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel, about the value of fixed annuities and their benefits to consumers. NAFA's membership represents every aspect of the fixed annuity marketplace covering 85% of fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998.

 

[Justin Bilyj]

It might explain why companies like Midland are transitioning to no commission, trail only life and annuities.

 

[scagnt83]

It might explain why companies like Midland are transitioning to no commission, trail only life and annuities.

Since when did Midland transition to trail only??? They have zero trail ONLY options as far as I know...

 

[Charpress]

When in the history of mankind has any government opted for less regulation as opposed to more regulation?

My own take on this is that if I have to spend any more time on "compliance", continuing education, self-reporting, licensing and annual re-licensing together with all the fees, I will quit and sit on a porch somewhere.

Each little compartment of government claims that their requirements "aren't that bad" -but they have no idea how cumulatively oppressive all the regulations have gotten.