The National Association of Insurance and Financial Advisors (NAIFA) is not happy about the latest move by the White House Office of Management and Budget (OMB) concerning the Department of Labor’s (DOL) revived fiduciary-only rule.
In a statement, NAIFA chief executive Kevin Mayeux, CAE (pictured), asserted: “The National Association of Insurance and Financial Advisors is disappointed that the White House Office of Management and Budget has concluded its review of the Department of Labor’s fiduciary-only rule that will limit the options of many American consumers seeking products and assistance as they prepare for retirement.
“While we appreciate that NAIFA was able to present many of our concerns about the rule in a meeting with OMB’s Office of Information and Regulatory Affairs (OIRA)… it is unfortunate that OMB decided to advance this rule so quickly, even while OIRA still has meetings with additional stakeholders scheduled.
“White House officials’ lack of engagement during our meetings with them and rush to complete the OIRA review gives the impression that the administration is rubber-stamping this rehashed proposal and not considering the serious consequences it will have for the American public.”
This morning, on behalf of @NAIFA and our members from coast to coast, I testified before the @WhiteHouse's @OMBPress about the incredibly harmful impacts the @USDOL's proposed final fiduciary-only rule would have on low and middle-income American families & small businesses.…
— Kevin Mayeux (@KevinMayeux) April 10, 2024
Mayeux stressed that the rule is a revival of the failed fiduciary-only model that would not only limit consumers’ choices but also curtail the access of many Americans to retirement products and services.
“This is the fourth time since 2010 the federal government has tried to expand fiduciary requirements for financial professionals,” the CEO noted. “This DOL proposal is particularly unfortunate, coming at a time when many Americans are concerned about their economic security and ability to prepare for retirement.
“NAIFA is particularly disappointed that DOL is trying to saddle consumers with an additional layer of regulations when the stated goals of the proposed rule are already being achieved by the Securities and Exchange Commission’s Regulation Best Interest and state measures based on the National Association of Insurance Commissioners’ model best interest regulation for annuity transactions, both of which provide robust consumer protections and require financial professionals to work in clients’ best interests.”
Mayeux also expressed NAIFA’s commitment to pursuing non-regulatory means of protecting consumers from the rule’s consequences.
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