NAIFA upset by “unlucky” OMB determination

The Nationwide Affiliation of Insurance coverage and Monetary Advisors (NAIFA) shouldn’t be blissful in regards to the newest transfer by the White Home Workplace of Administration and Price range (OMB) in regards to the Division of Labor’s (DOL) revived fiduciary-only rule.

In an announcement, NAIFA chief govt Kevin Mayeux, CAE (pictured), asserted: “The Nationwide Affiliation of Insurance coverage and Monetary Advisors is upset that the White Home Workplace of Administration and Price range has concluded its evaluate of the Division of Labor’s fiduciary-only rule that can restrict the choices of many American shoppers in search of merchandise and help as they put together for retirement.

“Whereas we respect that NAIFA was in a position to current lots of our issues in regards to the rule in a gathering with OMB’s Workplace of Info and Regulatory Affairs (OIRA)… it’s unlucky that OMB determined to advance this rule so shortly, even whereas OIRA nonetheless has conferences with extra stakeholders scheduled.

“White Home officers’ lack of engagement throughout our conferences with them and rush to finish the OIRA evaluate gives the look that the administration is rubber-stamping this rehashed proposal and never contemplating the intense penalties it should have for the American public.” 

This morning, on behalf of @NAIFA and our members from coast to coast, I testified earlier than the @WhiteHouse‘s @OMBPress in regards to the extremely dangerous impacts the @USDOL‘s proposed closing fiduciary-only rule would have on low and middle-income American households & small companies.…

— Kevin Mayeux (@KevinMayeux) April 10, 2024

Mayeux pressured that the rule is a revival of the failed fiduciary-only mannequin that may not solely restrict shoppers’ decisions but in addition curtail the entry of many Individuals to retirement services and products.

“That is the fourth time since 2010 the federal authorities has tried to broaden fiduciary necessities for monetary professionals,” the CEO famous. “This DOL proposal is especially unlucky, coming at a time when many Individuals are involved about their financial safety and skill to organize for retirement.

“NAIFA is especially upset that DOL is making an attempt to saddle shoppers with a further layer of rules when the said targets of the proposed rule are already being achieved by the Securities and Change Fee’s Regulation Finest Curiosity and state measures based mostly on the Nationwide Affiliation of Insurance coverage Commissioners’ mannequin greatest curiosity regulation for annuity transactions, each of which offer sturdy shopper protections and require monetary professionals to work in shoppers’ greatest pursuits.”

Mayeux additionally expressed NAIFA’s dedication to pursuing non-regulatory technique of defending shoppers from the rule’s penalties.

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