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.