(Bloomberg) — MetLife Inc. said its dual roles of offering retirement products and advising customers are threatened by a U.S. Labor Department proposal that was designed to make sure savers’ interests are put first.
“Without substantial modifications, the proposal could force companies such as MetLife to choose between manufacturing individual annuities and distributing,” Chief Executive Officer Steve Kandarian said on a conference call Thursday.
President Barack Obama’s administration says new rules are needed so that savers won’t be pushed into high-fee products by brokers who make commissions on the sales from banks or insurers. Kandarian previously likened the plan to forcing a Chevrolet dealership to guide potential customers to Ford vehicles.
“The proposed rule effectively makes it a conflict of interest to sell your own products,” Kandarian said Thursday. “It is unclear what public policy goal is served by making it more difficult for companies to provide guaranteed retirement income to consumers.”
Other providers of retirement products have also faulted the proposal, with Stifel Financial Corp. CEO Ron Kruszewski calling it “almost unworkable” and Voya Financial Inc. saying it would jeopardize retirement income by making it harder to get advice.