NAIFA CEO: SEC Proposal Highlights NAIFA Advocacy Work

Dear friends,
 
The Securities and Exchange Commission has proposed regulations to require broker-dealers and their registered representatives to act in the best interests of their retail investment clients. Under the rules, advisors would have to be upfront with clients about their business model, fee structures, and nature of the client-advisor relationship as well as mitigate or disclose conflicts of interest.
 
NAIFA generally supports a best interest standard for advisors to protect clients and safeguard the integrity and reputation of our industry. However, the SEC proposal (actually, three separate rules: S7-07-18, S7-08-18, and S7-09-18) runs for nearly 1,000 pages, and NAIFA is still reviewing it to ensure it does not harm your business and have unintended negative consequences for consumers.
 
One area of potential concern is language that would in some cases prohibit broker-dealers from using the terms “advisor” and “adviser” unless they are registered under the 1940 Investment Advisers Act. NAIFA will be very focused on this proposed restriction as the process moves forward. NAIFA experts are currently scrutinizing the proposed rules, looking for other potential areas of concern and trouble spots.
 
NAIFA leaders have already had meetings with two SEC commissioners, including Chairman Jay Clayton, and the chief counsel for a third. We have scheduled a meeting with a fourth commissioner. NAIFA has your back, and we are ensuring that the commissioners understand the important services insurance and financial advisors provide consumers and how it is important that federal regulations enhance rather than hinder your work.
 
It’s still very early in the game, and our efforts will continue throughout the process. NAIFA will submit detailed comments to the SEC on each of the proposed rules. (You can help by taking a brief survey that we will use in the comment letters.) We will continue our discussions with SEC commissioners and their staff members. The proposal will be on the agenda for more than 800 advisors  visiting their members of Congress on Capitol Hill on May 22 during NAIFA’s Congressional Conference. I hope you will be one of them. If you have not registered for the Congressional Conference, please do so today. We need your voice.
 
As always, NAIFA’s advocacy efforts will leverage all three branches of government to protect our members, our industry, your business, and your clients. Thank you for being part of NAIFA. Your membership is crucial to our success!
 
Best regards,

Kevin M. Mayeux, CAE
Chief Executive Officer
 
  • Posted April 24, 2018 IN


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