National Association of Insurance and Financial Advisors

Massachusetts Securities Division Proposes a Fiduciary Duty Standard

December 16, 2019

Massachusetts Secretary of the Commonwealth William Galvin, the state’s chief securities regulator, has filed a proposed regulation that would establish a fiduciary standard of conduct for broker-dealers, agents, investment advisers, and investment adviser representatives. The filing follows the preliminary fiduciary standard proposal issued by Secretary Galvin this past summer, with respect to which NAIFA Massachusetts, NAIFA, and other interested groups submitted comment letters opposing su...

NAIFA, ACLI Tell Congress that LTCi Can Help with Alzheimer’s Care Cost

December 16, 2019

In a joint statement for the record at a Senate committee hearing on issues involving care for Alzheimer’s patients, NAIFA and the American Council of Life Insurers (ACLI) touted long-term care insurance (LTCi) as an important tool in meeting the costs of Alzheimer’s care. The November 20 hearing was at the Senate Finance Committee’s Subcommittee on Health Care.   The NAIFA/ACLI statement pointed out that although Alzheimer’s is a driving force behind escalating long-term care costs, curr...

Administration Opposes FTT Proposals

December 16, 2019

On December 5, Treasury Secretary Steven Mnuchin told a House committee that he is worried about proposed financial transaction taxes (FTTs). He said he is “very concerned” that an FTT would “destroy our capital markets.”   Generally, an FTT would impose a tax on each trade of a security or other investment transaction. Usually, the tax proposed would be between two and ten basis points, and usually it would be imposed on the investment seller. A number of Democrats—including Presidential...

IRS Rules TCJA’s Basic Exemption Amount Survives if BEA Reverts in 2026

December 16, 2019

The Internal Revenue Service (IRS) has issued final rules that specify that the estate tax’s 2018-2025 basic exclusion amount (BEA) will apply for those years, even if the BEA reverts in 2026 to its pre-2018 levels. The final rule, TD 9884 ( click here ),  is effective November 26, 2019.   The Tax Cuts and Jobs Act (TCJA) upped the estate and gift tax exclusion to $11.58 million (as adjusted for inflation in 2020) per person (so, $23.15 million for a married couple). That is double the BE...

PBGC Predicts 2025 Insolvency for Its Multi-Employer Insurance Program

December 16, 2019

In its most recent annual report, the Pension Benefit Guaranty Corporation (PBGC)) told Congress it is currently running a $65 billion deficit in its multi-employer insurance program, and that it expects the program to run dry by 2025. With scores of multi-employer (labor union) pension plans nearing bankruptcy themselves, the PBGC shortfall is adding to the urgency of Congress addressing the union pension plan problem as soon as possible.   However, the multi-employer plans issue is hotl...