DOL Fiduciary News: January 26, 2018
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Major financial trade groups to CFP Board: Slow the effort to raise mark's fiduciary standard
InvestmentNews; Jan 25, 2018 @ 2:19 pm
Two prominent financial industry trade groups want the Certified Financial Planner Board of Standards Inc. to halt its effort to raise the designation's advice standard until the Securities and Exchange Commission has proposed its own fiduciary rule.
Last month, the CFP Board released a second draft of revisions to the standards of conduct attached to the mark.
Under the proposal, all CFPs, including brokers who hold the credential, must act in the best interests of their clients at all times when they are providing financial advice. The current standard holds CFPs to a fiduciary standard only during the financial planning process.
The CFP Board is taking comments on the proposal until Feb. 2 and has promised to issue a final rule by this summer. Meanwhile, the SEC is planning to propose its own fiduciary rule this year and the Labor Department is reviewing its fiduciary regulation under a directive from President Donald J. Trump that could result in major changes.
The Securities Industry and Financial Markets Association, which represents brokerages and other financial institutions, wants the CFP Board to stand down for now.
(http://www.investmentnews.com)
N.Y. Urges Life Insurance Fiduciary Standard in NAIC Rule
InsuranceNewsNet; January 25, 2018
In a reversal of roles, New York is urging the National Association of Insurance Commissioners to adopt the state’s new best interest regulation, which extends fiduciary responsibility to life insurance.
The New York finance superintendent made the suggestion in a comment letter submitted to the NAIC on its new annuity suitability model.
The NAIC model covers annuity sales only. Twenty comment letters on that proposal were accepted through a Jan. 22 deadline and released today.
The NAIC wants to create a model law that all states will adopt, creating a uniform national standard. Maria T. Vullo, New York superintendent of financial services, urged the organization to go further and cover life insurance.
“We believe that acting in the ‘best interest’ of the consumer is an appropriate standard for these products, which often are relied on by consumers as retirement security and estate planning,” her letter read.
(https://insurancenewsnet.com)