NAIFA President Responds to New York Times’ Report on Standards of Care
Lee Allen, Vice President of Communications and Marketing, NAIFA
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FALLS CHURCH, VA (February 22, 2010) — The front page of the February 16, 2010, Business section of The New York Times featured an article titled, “Struggling Over a Rule for Brokers.” In the article, reporter Tara Siegel Bernard referred to “three trade groups representing the industry.” Although unnamed in the article, the National Association of Insurance and Financial Advisors (NAIFA) is one of the trade groups referenced as opposed to the proposed regulations.
In response to the article, NAIFA President Tom Currey, CLU, ChFC, LUTCF states, “This proposal is a major departure from current law and has never been analyzed to determine if it would provide any greater consumer protection than the current standard that now governs the business transactions between broker-dealers and their customers. That standard is based on the “suitability” of products that meet a customers needs and includes detailed and heavily enforced FINRA consumer protection rules.”
Currey continues, “Suffice it to say, the fiduciary standard did nothing to protect Mr. Madoff’s clients.”
Click here to read The New York Times article.
Click here to view the op-ed article written by Thomas Currey, President of NAIFA.
About NAIFA: NAIFA comprises more than 700 state and local associations representing the interests of approximately 200,000 agents and their associates nationwide. NAIFA members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. The Association’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.