NAIFA Blog

Fidelity Investments Survey Finds DOL Rule Will Force Advisors Out of the Business

September 28, 2016

A new survey by Fidelity Investments has found that 10 percent of financial advisors are planning to “leave or retire from the field earlier than expected” because of the Department of Labor’s fiduciary rule and 18 percent are reconsidering their career choice. These results dovetail with a recent NAIFA survey of members working in the retirement space, which found that more than 15 percent will no longer provide retirement plan products or services because of the rule.   Only 24 pe...

With DOL Fiduciary Compliance Costs Mounting, Consumers Are Likely to Lose Out

September 23, 2016

Much remains unknown about how the Department of Labor’s fiduciary rule will impact the retirement planning market, but one thing seems clear: it will be costly.   The DOL, itself, estimated the cost to comply with the rule will be between $10 billion and $31.5 billion over ten years, with the most likely figure being $16.1 billion. The department expects $5 billion in first-year costs and $1.5 billion in annual costs after that.   Two companies have released figures on compliance...

NAIFA Survey Finds DOL Fiduciary Rule Likely to Reduce Retirement Advice for Lower- and Middle-Income Consumers

September 17, 2016

A survey by the National Association of Insurance and Financial Advisors of its members found that many advisors believe the Department of Labor’s fiduciary rule affecting retirement products and services will damage their ability to serve their clients, particularly those who are lower- or middle-income clients.   According to the survey of 1,167 NAIFA members, more than 62 percent said the DOL rule will or probably will force them to stop serving some or all of their clients. An addit...

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Insurers Pull Out of Exchanges Limiting Health Advisors and Clients' Options

August 18, 2016

Aetna has become the latest health insurance carrier to reduce its participation in health exchanges created under the Affordable Care Act. The company offered plans on 15 state exchanges this year, but will only participate in the Virginia, Delaware, Iowa and Nebraska exchanges next year. The company said participating in the exchanges was proving to be unprofitable. Other large carriers, including UnitedHealth Group and Humana, have also decided to reduce their participation in exchanges....

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NAIFA Opposes Proposal to Restrict Short-Term Health Care Plans

August 12, 2016

NAIFA has submitted a comment letter to the IRS raising concerns about the agency’s proposed regulation to limit “short-term” health insurance contracts to three months. NAIFA believes the three-month limit is too restrictive and could leave vulnerable consumers without health insurance coverage for significant periods of time while they wait for open enrollment periods.   Short-term coverage is often critical for individuals facing transitional periods in their lives. For example, youn...