Annuity regulation: NAFA’s Kim O’Brien on the coming storm

When it comes to state and federal annuity regulation, 2013 has been relatively quiet. But the industry shouldn’t be lulled into a false sense of security, because things are about to change, according to Kim O’Brien, president and CEO of the National Association for Fixed Annuities (NAFA).

As most insurance professionals know, NAFA plays a key role in educating policymakers, journalists, consumers and the financial industry about fixed income and deferred annuities. NAFA led the opposition of the SEC’s 151A proposal several years ago, and the organization continues to meet with legislators on Capitol Hill and elsewhere in an ongoing effort to protect these products.

I sat down recently with Kim O’Brien at NAFA’s IMO Summit in Aspen, Colo., where she discussed the importance of the upcoming 114th Congress and the five regulatory issues NAFA is currently tracking.

In the first part of the interview (below), Kim touches on tax reform and its relationship with the inside build-up of life insurance, the tax deferral of annuities, and the potential elimination of stretch IRAs; the fiduciary standard, the Harkin Amendment, the rapid spread of the suitability model, and more.

In the second half of the interview, which will be published next week, O’Brien discusses the SEC’s request to create a uniform fiduciary standard for broker/dealers; FIAs and QLACs; and Senator Orin Hatch’s Secure Annuities for Employee (SAFE) Retirement Act of 2013.