Oversight of insurance professionals when selling insurance products registered with the Securities and Exchange Commission (SEC) is different than for other types of security products, the Association for Advanced Life Underwriting (AALU) says.
Their distinction should be taken into consideration by the SEC as it considers possible gaps in regulation, the AALU says in a comment letter on the agency’s proposed fiduciary standard.
“The scope and level of regulation is significantly higher for variable life insurance products than for other securities under the existing standard of care,” the AALU says in a comprehensive, 55-page response to the SEC request for comment.