The Federation of Americans for Consumer Choice (FACC), voicing deep concerns with the Department of Labor’s “Improving Investment Advice for Workers & Retirees” proposal, is urging DOL to reconsider its proposal. FACC submitted written comments to DOL outlining how the proposal will significantly disrupt the fixed insurance marketplace, turn traditional insurance agents into fiduciaries, and create unworkable hurdles for independent distribution.
RE: Improving Investment Advice for Workers & Retirees Proposal
To Whom it May Concern:
The Federation of Americans for Consumer Choice (FACC) wishes to express its deep concerns regarding the above proposal issued by the Employee Benefits Security Administration of the Department of Labor (herein the “Department” or “DOL”).
Draft: 9/17/19 FACC Redline 9/30/2019 NOTE: This mark –up is not meant to be definitive. Rather, it is meant to be illustrative of some, but not all, of our points raised in our comment letter. It is subject to continuing analysis and development. See download for full body of document.
January 2019 TO: Trade Organizations with Members in the Independent Distribution Channel RE: NAIC Best Interest Regulation We the undersigned are Independent Marketing Organizations (IMOs) and many of us belong to trade organizations or work with companies that belong to trade associations. In the past few months we have been
Members of the FACC Campaign have been working to develop an alternative to the NAIC Suitability Working Group’s proposal to regulate a best interest standard that is stronger for consumers by protecting their access to affordable insurance representation.
While some might read the Fifth Circuit decision merely as a rebuke to the Labor Department, the FACC Campaign believes the Fifth Circuit decision stands for a larger proposition. The Court made clear that agents who sell products are not fiduciaries and should not be held to fiduciary standards. To do otherwise is contrary to decades of common law as well as highly evolved statutory and regulatory decision-making.
While the Scottrade case and these various pronouncements generally are directed at the securities industry, not fixed annuities, the implications are deeply worrisome. The Fixed Annuity Consumer Choice (FACC) Campaign is concerned these developments prove the U.S. Department of Labor is losing control over the rule and unleashing uncontrolled forces such as hyper-aggressive state regulators and the always profit-hungry plaintiff’s bar that may wreak havoc on the financial services industry.
If you live or have a business in Georgia, please take a moment to send Senator Perdue a letter thanking him for his support and leadership. You can do so by simply clicking on the foregoing link. If you prefer to call him, his DC office number is (202) 224-3521 and his Atlanta number is 404-865-0087.
The FACC Campaign is concerned many agents and distributors are not aware of THREE VITAL FACTS: 1. DOL HAS NOT YET ISSUED A DELAY – the Office of Management & Budget approved the proposed delay in record time but we have heard nothing formally from DOL as of today. 2.
The FACC Campaign is grateful to Congressmen Stivers & Cleaver and thanks them for their support and thoughtful letter to Secretary Acosta!