NAIFA Members: Serving Main Street Investors

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Comment on NAIFA's new surveys and on the issues important to NAIFA Members on The NAIFA Blog.

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NAIFA Leaders Meet with SEC Chairman, Commissioners

Two new surveys – one of NAIFA members and one of consumers – show that Main Street investors, that is, those in the middle market income range, represent a core client base of NAIFA members. The surveys also indicate that these investors have a need for the services provided by broker-dealers and registered representatives, who make up the majority of NAIFA’s membership, but that added regulatory burdens could limit the ability of NAIFA members to serve them.

The surveys, conducted by LIMRA International on behalf of NAIFA, specifically look at whether new regulations requiring all financial advisors to operate under a fiduciary standard would affect the ability of broker-dealers to serve their Main Street clients. Most NAIFA members feel that an imposed fiduciary standard would increase their compliance costs. If costs go up 15 percent, 65 percent of the NAIFA members surveyed said they would need to take actions that could limit the middle market’s access to financial advice. These include limiting their practice to affluent clients, declining to offer securities products, and implementing or increasing fees.

Most of the NAIFA members surveyed say that increased regulation would not change the way they act with clients, because they are already heavily regulated and they currently do the best they can for their clients. The resources below explain the survey in greater detail and provide key findings.

Main Street Investors Resources

Media Coverage

Coming unintended consequences against middle-class investors
Cincinnati Finance Examiner, January 4, 2011

Insurers fight against strict fiduciary standard
Reuters, December 20, 2010

Terry Headley: Agents' advocate faces tax policy fights
Investment News, December 19, 2010

NAIFA: Universal Fiduciary Standard Would Hurt Consumers
National Underwriter, December 17, 2010

Fiduciary-duty bad news for less affluent clients: NAIFA
Investment News, December 17, 2010

Insurers fight against strict fiduciary standard
Fidelity.com, December 17, 2010