NAIFA Leaders Meet With SEC Chairman Clayton

NAIFA President Keith Gillies and CEO Kevin Mayeux met with Securities and Exchange Commission Chairman Jay Clayton yesterday to discuss NAIFA’s support for a “best-interest” standard of care for advisors and potential impacts of SEC regulations on advisors and their clients.
Mayeux and Gillies told the chairman that NAIFA members work in communities all across the United States with Main Street clients to help them reach financial goals and protect their families from life’s inevitable risks and uncertainties. Insurance and financial advisors, the NAIFA leaders said, look out for the best interests of their clients as a general business practice and build lasting relationships with those for whom they work.
NAIFA is eager to work with the SEC as the commissioners develop a best-interest standard for advisors that is straight-forward and ensures that clients come first, Gillies said.
NAIFA’s main objective is to ensure that a best-interest standard does not create barriers that would prevent advisors from serving middle- and lower-income consumers who need the flexibility to choose how they seek advice and how they compensate advisors.
Gillies said that his mother is a good example of a typical client with a modest-sized account who could be impacted by a regulation that is overly burdensome. “Other people don’t have a son who can make sure they get affordable advice tailored to their individual situations,” Gillies said.
“We’ve got to get this rule right so that we can deliver the services these consumers need,” he added.
Clayton agreed that it is important “that people have access to human advice,” particularly those who are able to invest only modest amounts.
Gillies said NAIFA strongly advocates a best-interest standard that is straight-forward, easy to understand, and easy for everyone involved to determine if an advisor is in compliance.
“I’m talking about keeping disclosure forms short and simple,” Gillies said. “Not a 40-page document that no one will read.”
Gillies said an ideal disclosure would be one that an advisor could explain to a client in two minutes or less, and the chairman concurred.
Clayton said that the SEC’s goal is to have a proposal ready by second quarter of this year.
NAIFA will remain involved in the process and is eager to assist the SEC whenever possible, Gillies and Mayeux said.
  • Posted March 7, 2018 IN
  • Comments (1)

Michael Labadorf
Meeting between NAIFA leaders and SEC (Securities and exchange commission) Chairman Clayton may produce good results. Very important discussion regarding best interest standard for customers which may meet financial goals. Very informatic blog. Thank you.
3/12/2018 1:33:53 AM