Massachusetts officials have cut the two direct references to sales of insurance products out of the final version of the state’s new fiduciary rule.
The American Council of Life Insurers (ACLI) and the Insured Retirement Institute (IRI) are holding off on declaring victory,
- Links to the original proposal and related documents, including comments, are available here.
- Links to the final version, and related documents, are available here.
ACLI President Neely said in a statement that the ACLI is reviewing the regulation.
“Our goal, in Massachusetts and elsewhere, is for small and moderate savers to maintain access to the financial guidance and protection they want and need,” Neely said.
Jason Berkowitz, IRI’s chief legal and regulatory affairs officer, said IRI is reviewing the regulation with IRI members to determine the full meaning of the regulation, and its potential effects.
“Broadly, we remain concerned that the Massachusetts regulation will limit consumers and investors of their choice of investment professional and of products that are important to retirement planning and financial well-being,” Berkowitz said.
The U.S. Securities and Exchange Commission is planning to implement its Regulation Best Interest sales standard regulation June 30.
IRI thinks states should give Reg BI time to work before considering the idea of developing new regulations, Berkowitz said.
Berkowitz said the National Association of Insurance Commissioners (NAIC) recently approved a new best interest model regulation for annuity sales.
“This model regulation aligns well with Reg BI, and IRI urges all states to adopt it quickly,” Berkowitz said. “Combined, the SEC and NAIC regulations offer substantial enhancements to consumer protections, new compliance requirements for financial firms and stringent enforcement mechanisms.”