SAN ANTONIO -- Now that the Department of Labor fiduciary rule is dead, NAIFA's advocacy efforts are turning toward making sure proposed best interest standards are "reasonable and appropriate."
That was the theme of this morning's Legislative Forum on the final day of the NAIFA annual convention.
After the "roller coaster ride" over the fiduciary rule, the tide is turning toward a best interest standard proposed by the Securities and Exchange Commission, said NAIFA assistant vice president Judi Carsrud.
Carsrud described NAIFA's involvement in getting the DOL rule vacated. But the association is now looking at the future of best interest standards.
"We still believe the suitability standard is acceptable but NAIFA now supports a reasonable best interest standard of conduct," said NAIFA general counsel Gary Sanders. "Our members' business model is relational and not transactional.
"We're not afraid of a best interest standard but it must be done in a reasonable and appropriate way," he continued.
Sanders added that one area of the proposed standard that is troubling is the proposed restrictions on who can be called an advisor.
"But we think the best interest proposal is one we can live with, but there need to be some tweaks made to it," he said. "This is a process that will go on for a long time. It could be a number of years before it is finalized."
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.
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