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DOL Fiduciary News: October 22, 2018

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NAIC Annuity Sales Rule Proposal Faces Showdown In Chicago

InsuranceNewsNet; October 19, 2018

The stakes will be high when Idaho Insurance Commissioner Dean Cameron gavels a special meeting Monday afternoon to continue work on an annuity sales model law.

A National Association of Insurance Commissioners’ working group is again meeting in person – this time in Chicago – in another bid to bridge a seemingly unbridgeable divide between conservative and liberal factions.

When the group last gathered – during the August NAIC Summer Meeting in Boston – New York officials pressed for a best-interest model law that includes life insurance as well as annuities.

"Certainly this committee should keep active in this and not just accept the working group's report and move on," New York Superintendent of Financial Services Maria Vullo said at the Life Insurance and Annuities Committee meeting. "There's no reason that the suitability should not apply to both, annuities as well as life insurance."

Final SEC Advice Standards Package Coming September 2019

ThinkAdvisor | October 18, 2018 at 09:42 AM

The Securities and Exchange Commission plans to issue a final rule on its advice standards package for broker-dealers and investment advisors by September 2019, according to the agency’s regulatory agenda.

The multi-pronged package includes the proposed changes to the agency’s Form Customer Relationship Summary, or Form CRS; amendments to Form ADV, along with required disclosures to retail communications and restrictions on the use of certain titles; Regulation Best Interest; and the securities regulator’s interpretation regarding standard of conduct rules for investment advisors as well as a request for comment on enhancing advisor regulation.

Ed Mills, policy analyst for Raymond James, said the anticipated finalization of the package “is later than what was expected,” adding that final implementation won’t likely occur until late 2020 or early 2021.

New DOL Fiduciary Rule Coming Next Fall

ThinkAdvisor | October 18, 2018 at 01:28 PM

The Labor Department plans to issue in September 2019 a revised final fiduciary rule package to replace the one vacated this spring by the U.S. Court of Appeals for the 5th Circuit, according to Labor’s fall regulatory agenda. 

That’s likely one reason why the Securities and Exchange Commission’s final advice standards package “is taking longer than many expected,” Steve Saxon, principal at Groom Law Group, told ThinkAdvisor on Thursday.

NAIC Working Group Chair Critical Of Annuity Illustration Changes

InsuranceNewsNet; October 18, 2018

The mood turned against allowing insurers to illustrate indexed annuities using indices that have been around less than 10 years during a state insurance commissioners' working group meeting today.

Birny Birnbaum, executive director of the Center for Economic Justice, swayed commissioners with passionate comments against the concept during a midday conference call.

Allowing insurers wide leeway in annuity illustrations is in direct opposition to what the National Association of Insurance Commissioners is trying to do with life insurance, he noted.

"The opportunities for mayhem are far too great no matter how good the intentions of the people who are composing it," Birnbaum said. "There are going to be people out there who want to game the system and this opens the door to huge gaming of the system."