Letter by House Democrats Urges DOL to Reconsider Fiduciary Proposal

NAIFA President Juli McNeely issued the following statement:
NAIFA is pleased that Rep. Gwen Moore (D-WI) and more than 20 of her Democratic colleagues in the House have circulated a letter to Labor Secretary Thomas Perez supporting “improvements to the Dept. of Labor retirement investment rulemaking.” The members of Congress correctly point out that the proposed rule’s Best Interest Contract Exemption would create “practical problems for providers to implement the exemption as proposed.” NAIFA supports the representatives’ call for DOL to work with stakeholders on solutions that will ensure the proposed rule does not overburden advisors and their clients by requiring signed contracts before advisors can have substantive conversation with clients.
The letter also discusses the benefit of lifetime income options provided by annuities “as part of a diversified retirement strategy,” which NAIFA wholeheartedly supports. The representatives ask DOL to reconsider burdens that the proposal would place on advisors who work with clients to obtain annuities, saying that the rule should “not disadvantage lifetime income options.”
The Democrats’ letter along with previous letters and statements from Republicans and Democrats in Congress show that there is bipartisan support in Congress for DOL to fix the proposed rule, which is unworkable as currently written. In addition to Rep. Moore, NAIFA would like to thank the 20+ Democrats for signing on to the letter.
  • Posted September 17, 2015 IN

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