Passage of the National Association of Registered Agents and Brokers Act (NARAB II), which would establish an insurance licensing clearinghouse for financial professionals operating in multiple states, would help retirees and boomers stay with their advisor when moving out of state.
The House Financial Services Committee approved an amendment June 20 that added NARAB II to the Terrorism Risk Insurance (TRIA) Reform Act of 2014 (H.R. 4871). The amendment was offered by Rep. Randy Neugebauer, R-Texas, and was approved by voice vote. The committee voted 32-27 to report the bill to the full House.
“With recent legislative victories in hand, it’s clear that there is unprecedented momentum and support for moving NARAB II forward this year,” Lee Covington, senior vice president and general counsel for the Insured Retirement Institute, told attendees at IRI’s Government Legal & Regulatory Conference in Washington on Monday.
IRI, he said, “will continue to work with congressional leaders to find the right legislative vehicle to get it across the finish line and off to the White House for President Obama’s signature.”
An investor survey conducted by IRI earlier this year found that 43% of investors said they are considering relocating to another state for retirement, while a separate IRI survey of baby boomers found that three in four would want to keep working with their financial planner if they relocated to another state.
The Senate passed NARAB II legislation, as part of a flood insurance bill, in late January. But while the House had already passed standalone NARAB II legislation in September 2013, it passed its own version of the flood bill without NARAB II.
IRI says that the “next opportunity” for NARAB II passage may be to include it in the legislation to extend TRIA, which will expire at year end without reauthorization.
Check out NARAB II Bill Clears Senate Banking Committee on ThinkAdvisor.