National Association of Insurance and Financial Advisors

NAIFA CEO Joins Other Industry Leaders to Testify on Massachusetts Fiduciary Proposal's Flaws

NAIFA CEO Kevin Mayeux testified today at a hearing of the Massachusetts Securities Division that a proposed fiduciary standard of care for financial professional in the state would likely harm many of the consumers it aims to protect.
 
Mayeux was one of several industry thought leaders, also including Susan Neely, President and CEO of the American Council of Life Insurers (ACLI), Wayne Chopus, President and CEO of the Insured Retirement Institute (IRI), Dale Brown, President and CEO of the Financial Services Institute (FSI), and Kenneth Bentsen, President and CEO of SIFMA, who spoke with a unified voice on behalf of the industry and consumers about the proposals’ flaws.
 
A chief concern is that the proposal is biased in favor of fee-based financial services over those that are commission-based, even though paying annual fees could result in higher costs for many investors. And because fee-based advisory firms often require account minimums of $250,000 to $500,000 or more, many middle-market investors could lose access to guidance, services, and products.
 
“NAIFA members’ clients generally do not have the level of assets required by most fee-based advisors – so my question to you is: ‘Where will these investors get advice and service?’” Mayeux said during his testimony. “The answer is unclear at best, and we believe these consumers will lose out on the valuable services that NAIFA members and other financial professionals provide.”
 
See also:
Kevin Mayeux’s complete testimony
NAIFA’s comment letter to the Securities Division
IRI’s press release
SIFMA’s press release
ThinkAdvisor article on the hearing
 
  • Posted January 7, 2020 IN


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