NAIFA and ACLI File Legal Challenge Against DOL Fiduciary Rule

NAIFA and the American Council of Life Insurers (ACLI) have filed a lawsuit in federal court challenging the U.S. Department of Labor’s fiduciary regulation. 

“ACLI and NAIFA do so reluctantly,” ACLI President and CEO Dirk Kempthorne and NAIFA CEO Kevin Mayeux said in a joint statement.

The organizations believe the DOL regulation will “reduce Americans’ access to accurate and valuable information from financial professionals about their 401(k)s, IRAs and other retirement plans, including information about guaranteed lifetime income products, such as annuities.”

The regulation will also reduce the availability of annuities in the marketplace, reducing the options Americans have when planning for retirement.

“At a time when Americans need more help than ever before with planning for retirements that can last 20 years, 30 years or more, the department would make financial advice unavailable to so many,” Kempthorne and Mayeux said. “The Department of Labor’s fiduciary regulation restricts activities that encourage low- to moderate-income Americans to save and limits the ability to secure private-sector guaranteed life income to help pay for retirement.”

NAIFA-Texas and five NAIFA local associations (NAIFA-Amarillo, NAIFA-Dallas, NAIFA-Fort Worth, NAIFA–Great Southwest, and NAIFA–Wichita Falls), also joined ACLI in the judicial challenge. Taking this step is another means of ensuring that NAIFA leaves no stone unturned in our ongoing efforts to seek a regulatory environment that gives American savers access to professional financial assistance and retirement products under a variety of business models.

Additional comment from NAIFA CEO Kevin Mayeux.
 


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