DOL Advances Fiduciary-Only Proposal That Would Limit Access to Financial Services for Lower- and Middle-Income Consumers

NAIFA CEO Kevin Mayeux, CAE, issued the following statement in response to the U.S. Department of Labor’s decision to advance its proposed “Retirement Security Rule” for review by the White House Office of Management and Budget (OMB).

“It is unfortunate that the Department of Labor is moving forward with its revived fiduciary-only proposal, despite comments from thousands of financial professionals and consumers and evidence offered by NAIFA and others in public hearings and written comments that the rule would harm millions of consumers. DOL is intent on continuing the regulatory process with the aim of finalizing a rule that would limit the access of lower- and middle-income savers to much-needed financial guidance.

“Prominent members of Congress have joined NAIFA in voicing opposition to the DOL proposal, which is similar to a DOL rule vacated by a federal appeals court in 2018. Retirement savers benefit from robust protections under the SEC’s Regulation Best Interest and state laws and regulations based on the NAIC’s best interest model for annuity transactions, both of which require financial professionals to work in clients’ best interests. These protections make the DOL proposal entirely unnecessary.

“NAIFA encourages OMB to reject the proposed rule and supports legislative proposals that would prevent the DOL from finalizing a rule that would harm American families and businesses. NAIFA will continue to advocate for American consumers to protect their much-needed access to financial products and services.”

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