Life insurance and annuities will be excluded from the legislation of the Consumer Financial Protection Agency (CFPA). The announcement came as a result of an achievement by Congresswoman Gwen Moore (D-WI) and Congressman Erik Paulsen (R-MN).
After clarifying the definition of the “business of insurance,” Moore, Paulsen and the House Financial Services Committee were able to determine that life insurance and annuities were not to be included under the jurisdiction of the new agency.
The Insured Retirement Institute (IRI), a non-profit organization dedicated to promoting consumer confidence in insured retirement strategies, considered the development beneficial for industry. Cathy Weatherford, president and CEO of IRI, responded to the announcement saying, “Today’s action brings us one step closer to protecting consumers while allowing the industry to provide the best products in the most timely fashion…We look forward to continuing to work with leaders on Capitol Hill as this legislation moves through Congress in the coming weeks.”
Annuity products are currently regulated by the Security and Exchange Commission (SEC), FINRA and 50 state regulators.