WASHINGTON BUREAU — Providers of retirement products could be exempt from oversight by the proposed Consumer Financial Protection Agency.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, earlier this week suggested proposal revisions that would keep retirement services providers out of CFPA jurisdiction.
Officials at the National Association of Insurance and Financial Advisors, Falls Church, Va., are welcoming the revisions, but they say the devil is in the details.
The proposed legislation still contains provisions that could lead to CFPA regulation of all credit-related products, including those provided by insurance companies and agents, NAIFA President Tom Currey says.
“How the next iteration of the CFPA language deals with credit-related insurance products in the actual legislative proposal is of concern to NAIFA,” Currey says. “The initial Financial Services Committee draft language took a very broad approach to credit-related products including insurance that could, essentially, eliminate the ‘credit-related’ limitation on the powers of the new agency. We shall see.”
Frank talked about the CFPA retirement products exemption at financial services regulatory reform hearing.
Frank also has broached the topic in a CFPA memo circulated to interested parties, and he expects to convene a Financial Services Committee hearing on the CFPA at 10 a.m. Sept. 30. http://www.house.gov/apps/list/hearing/financialsvcs_dem/hr_092309.shtml
The Frank memo states that providers of individual retirement accounts, 401(k) retirement plans, 529 college savings plans and defined benefit pension plans would be exempted from CFPA oversight.