Skip to content

Regulatory

Understand Today's Environment

Multiple Best Interest rules or standards have been proposed or passed into law recently by the Securities and Exchange Commission (SEC), National Association of Insurance Commissioners (NAIC), and some individual states. These fiduciary standards with varied jurisdictions are likely to bring significant change and complexities to consumers, financial professionals, and the industry. We provide information to help you understand these developments and their implications.

Best Interest/Fiduciary

NY Regulation 187

With the DOL Fiduciary Rule vacated by the 5th circuit court of appeals in 2018, the industry's intense fiduciary focus has shifted to state regulators. Of particular impact to the life and annuity industry is the New York Department of Financial Services (DFS) amendment to Regulation 187, renamed, “Suitability and Best Interests in Life Insurance and Annuity Transactions” regulation.

Other State Initiatives

With the DOL Fiduciary rule having been vacated by the 5th circuit court of appeals in 2018, the intense focus across the industry on the federal fiduciary rule has now shifted to state regulators threatening a Potpourri of legislation across the states. The states of New York, Nevada and Connecticut have already passed Best interest laws. Others, including New Jersey, Massachusetts, and Illinois have proposed new legislation.

SEC Best Interest

ON June 5th 2019, the Securities and Exchange Commission adopted a new rule establishing a standard of conduct for broker-dealers when making a recommendation to a retail customer of any securities transaction or investment strategy involving securities (“Regulation Best Interest”). Regulation Best Interest enhances the broker-dealer standard of conduct beyond existing suitability obligations, and aligns the standard of conduct with retail customers’ reasonable expectations.

NAIC Annuity Suitability

The Suitability in Annuity Transactions Model Regulation require insurers to establish a system to supervise recommendations and to set forth standards and procedures for recommendations to consumers that result in transactions involving annuity products so that the insurance needs and financial objectives of consumers at the time of the transaction are appropriately addressed.

Workplace Retirement Initiatives

DOL Rules on ARPs

The U.S. Department of Labor (DOL) has released a final ruling, to be effective September 30, regarding association retirement plans (ARPs). This will allow small businesses to join together to provide their employees defined benefit retirement plans. (More)

DOL Issues Final PTE for Auto Portability

July 31st the U.S. Department of Labor (DOL) released the final Prohibited Transaction Exemption (PTE) to Retirement Clearinghouse (RCH) for the RCH Auto Portability program, completing the regulatory framework required for its adoption. (More)

What We're Hearing

LIMRA's Collection of Curated Third-Party Content

The Final Reg BI Package: What to Know and What’s Next

Drinker Biddle, June 12, 2019

The SEC’s New Standard of Conduct Rules – Application to Retirement Accounts

Eversheds Sutherland, August 12, 2019

Emerging Fiduciary Patchwork Chart

Eversheds Sutherland, August 14, 2019

Best Interest Standards by Eversheds Sunderland

By Susan S. Krawczyk Partner, Eversheds Sunderland and Cynthia R. Shoss Partner and Co-Head of Global Insurance, Eversheds Sunderland

Time to Start Again: Preliminary Views on Regulation Best Interest

Oliver Wyman, 2019

SECURE Act

SECURE Act

The SECURE (Setting Every Community Up for Retirement Enhancement) Act was designed to help Americans save for retirement. How does it help them save?

Upcoming Related Events

  • There are currently no upcoming {{selectedCategory.title}}

  •  {{eventItem.ext.dateStart.month}} {{eventItem.ext.dateStart.day}}
     {{eventItem.ext.dateStart.month}} -
     {{eventItem.ext.dateEnd.month}} {{eventItem.ext.dateEnd.day}}
    {{eventItem.ext.dateStart.month}} {{eventItem.ext.dateStart.day}}

    {{eventItem. title}}

    {{eventItem.location}}

Upcoming and On-Demand Webinars

DOL Fiduciary Rule Under the Biden Administration

8/11/2021 2:00 PM EDT - 3:00 PM EDT

The Department of Labor's Prohibited Transaction Exemption 2020-02, called Improving Investment Advice for Workers and Retirees, expands the definition of fiduciary advice under ERISA to recommendations about rollovers and IRA investments.

REGISTER

Compliance Webinar Series

Learn about the implications of the DOL's Prohibited Transaction Exemption 2020-02 (PTE 2020-02): Improving Investment Advice for Workers and Retirees and what it means for your compliance training and education program, including supervision practices.

 

Prohibited Transaction Exemption 2020-02: Registered Broker-Dealer Compliance Considerations

This webinar discusses practical implications carriers and service providers should be thinking about as they look to comply with its requirements through the transition period (up to December 20, 2021).

 

Prohibited Transaction Exemption 2020-02 Investment Adviser Compliance and Regulatory Impacts

This Webinar is for insurance carriers, broker-dealers, advisers, and service providers to ERISA plans and IRAs.

 

Potential Compliance Implications for Insurance Carriers Relying on PTE 84-24 (and Alternatives)

For insurance carriers, broker-dealers, and investment advisers that intend to utilize the Prohibited Transaction Exemption 2020-02, a heavy compliance burden lies ahead. Firms will need to develop a comprehensive process for measuring reasonable compensation and document how inherent conflicts of interest are mitigated.

 

DOL Fiduciary Rule: Practical Implications for Insurance Carriers

This webinar discusses practical implications carriers and service providers should be thinking about as they look to comply with its requirements through the transition period (up to December 20, 2021).

 

Changes to Internal Revenue Code 7702

In this webinar you’ll learn more about the reason for the change, a high level overview of the effect on universal life and whole life as well as other short- and long-term implications for life insurer carriers.

SECURE Act Update

The Secure Retirement Institute will bring you Ben Norquist of Convergent Retirement Plan Solutions for an early high-level discussion of the Secure Act, and what you need to know and do now as you assess the impact on your retail and institutional retirement plans businesses.

NY Reg 187 for Life Insurance: Need Some Guidance?

NY Reg 187 for Life Insurance: Need Some Guidance?

Regulatory and Legislative Trends Impacting the U.S. Retirement System

Recent guidance from the Department of Labor and Internal Revenue Service as well as potential legislation have the potential to profoundly change the retirement system in the coming years.

SEC Best Interest Interplay With DOL:What Will Compliance Look Like?

SEC Best Interest Interplay With DOL:What Will Compliance Look Like?

Looking Ahead to Best Interest Standards for Life and Annuity Sales

This webinar, the first of two parts, will discuss the new “best interest" standard and related supervision requirements for insurers and intermediaries operating in New York under Amendment No. 1 to New York Insurance Regulation 187.

Looking Ahead to Best Interest Standards for Life and Annuity Sales - Part II

This webinar, the second of two parts, will expand the discussion of enhanced standards of care and related supervision requirements emerging at the state and federal levels.