The head of the American Council of Life Insurers (ACLI) says a group of state attorneys general who are fighting Regulation Best Interest in federal court are misguided.
(Related: 8 Attorneys General Sue SEC Over Reg BI)
The attorneys general filed the suit earlier this week in the U.S. District Court for the Southern District of New York. The plaintiff group includes the attorney general for the District of Columbia along with the attorneys general for seven states: California, Connecticut, Delaware, Maine, New Mexico, Oregon, and New York state.
The Group of 8 plaintiffs say that the U.S. Securities and Exchange Commission’s new Reg BI sales standard regulation violates the Dodd-Frank Act investor protection standards review requirements, and that the SEC failed to do an adequate regulation impact analysis.
ACLI President Susan Neely says in a statement that Reg BI is consistent with the Dodd-Frank Act requirements.
“What’s more, the claim that the SEC did not do a thorough cost-benefit analysis on the regulation is disingenuous,” Nelly says in the statement. “The SEC went beyond official rulemaking requirements to analyze and elicit costs and benefits from all stakeholders as it crafted Reg BI.”
Neely says the Group of 8 is simply trying the revive the U.S. Department of Labor’s fiduciary rule, which was struck down by a federal appeals court in March 2018.
“This flawed regulation eliminated choice and access to information that every day consumers need to secure their retirement,” Neely says. “Reg BI’s approach is much better suited for Main Street consumers. It provides enhanced protections and preserves access to a variety of retirement products and guidance from professionals acting in consumers’ best interest.”
— Read NRA Suitability Rule Likely a ‘Non-Factor’ Due to Reg BI: Attorney, on ThinkAdvisor.