Maintain Unity For Easing Investment Advice Restrictions
With so many issues around that divide one sector of the life insurance business from another, it is always an occasion to cheer when an issue comes up and acts as a rallying point for everyone.
This is the case with a bill being debated in the House now. H.R. 2269 would allow financial services firms already providing products and services to defined contribution plan sponsors to also provide investment advice to plan participants.
The legislation would ease the fiduciary rules of the Employee Retirement Income Security Act, which currently bar these firms from offering investment advice.
Needless to say, both life insurers and agents see opportunity here and are strongly in favor of the bill.
The major obstacle the industry faces is one of perception; namely, can insurers and agents that provide products to plans also give unbiased investment advice?