September 23, 2016
Much remains unknown about how the Department of Labor’s fiduciary rule will impact the retirement planning market, but one thing seems clear: it will be costly.
The DOL, itself, estimated the cost to comply with the rule will be between $10 billion and $31.5 billion over ten years, with the most likely figure being $16.1 billion. The department expects $5 billion in first-year costs and $1.5 billion in annual costs after that.
Two companies have released figures on compliance...
June 8, 2016
NAIFA and the American Council of Life Insurers (ACLI) have filed a lawsuit in federal court challenging the U.S. Department of Labor’s fiduciary regulation.
“ACLI and NAIFA do so reluctantly,” ACLI President and CEO Dirk Kempthorne and NAIFA CEO Kevin Mayeux said in a joint statement .
The organizations believe the DOL regulation will “reduce Americans’ access to accurate and valuable information from financial professionals about their 401(k)s, IRAs and other retirement plans, inc...
May 20, 2016
The Department of Labor’s final rule to expand the definition of investment advisor fiduciaries under ERISA is complex and poses uncertainty on how the rule will impact retirement investors’ access to affordable products or advice, members of the National Association of Insurance and Financial Advisors will tell Congress May 25 during meetings on Capitol Hill. The meetings take place during NAIFA's 2016 Congressional Conference May 24-25 at the Gaylord Hotel at National Harbor, Md.
December 8, 2015
If the proposed fiduciary rules set forth by the U.S. Department of Labor are put into play, many Americans would lose out, especially “younger savers and those who have not had a lot of time to acquire significant savings” for retirement, Rep. Peter Roskam (R-IL) told NAIFA members during NAIFA’s Political Involvement and Political Action Training Meeting Dec. 2.
“The state of play on DOL is a bad proposition for a lot of reasons,” Roskam said. “My perception is there are people who b...
November 6, 2015
The Department of Labor’s proposed fiduciary rule will have effects on financial professionals and their clients that far exceed estimates made by government regulators and even the industry, according to an analysis by Morningstar.
Morningstar’s October 2015 “Financial Services Observer” says that the highest government and industry estimate of the rule’s annual cost is $1.1 billion. However, Morningstar estimates a minimum annual cost of $2.4 billion.
As a result, the report p...