DOL Fiduciary News: May 18, 2017
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DOL Rule Confusion Leads to Wait-and-See Approach by Distributors
InsuranceNewsNet; May 17, 2017
Confusion surrounding the Department of Labor’s fiduciary rule has caused insurance distributors to hold back on specific sales strategies and that could affect annuity sales this year, insurance company executives said.
The rule, which raises investment advice standards into retirement accounts, also appears to be having an impact on the amount of money going into nonretirement accounts.
“The DOL is creating confusion more than anything else, and so you’re seeing some of our distribution partners not coming forward with their specific plans, because they are waiting to see what the final rule is really going to be,” said Dennis R. Glass, president and CEO of Lincoln Financial, a major seller of variable annuities.
Even if Trump repeals the fiduciary rule, DoL has reshaped the industry
OnWallStreet; May 16, 2017 @ 3:26 pm
WASHINGTON -- Whether or not the Department of Labor's long-delayed and controversial fiduciary rule ultimately becomes the law of the land is almost beside the point, according to Jack Brennan, the former Vanguard CEO who now chairs FINRA's board of directors.
The highly publicized debate has already reshaped business practices and investor expectations, so that the best-interest measure of advice is on its way to becoming the de facto industry standard, Brennan argues.
He expects FINRA and the SEC will eventually move on crafting similar regulations, shoring up a trend that the Labor Department started when it unveiled the fiduciary rule in April 2016.