Harmful Regulation to Retirement Savers Should Be Delayed

WASHINGTON, July 21 -- The American Council of Life Insurers issued the following news release:

The American Council of Life Insurers (ACLI) asked the U.S. Department of Labor to delay for one year the remaining aspects of its fiduciary regulatory effort slated for implementation on Jan. 1, 2018 while the Department works to complete its examination as directed by the president's February 3, 2017 memorandum.

While there is no indication yet on when the department's review of its rulemaking will be completed, we expect a one-year delay would provide sufficient time for it to complete its examination, "determine next steps, and communicate the results of the examination and the Department's future plans to stakeholders," ACLI said in response to the department's request for information about the regulation.

James Szostek and Howard Bard, ACLI vice presidents, Taxes and Retirement Security, submitted the comments on ACLI's behalf. ACLI will soon follow up with comments in response to additional department questions about the regulation.

"A delay is prudent and necessary to prevent further harm to retirement savers," ACLI said. The regulation is "already adversely affecting the ability of Americans to save and receive retirement information and financial advice."

In addition, a delay will allow time for the Department to consider and make key changes while coordinating with other regulators, such as the SEC, FINRA, and state insurance regulators, recognizing and benefiting from market and prudential regulatory developments since the issuance of the final regulation, ACLI said.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 member companies operating in the United States and abroad. ACLI advocates in state, federal, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers' products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing 94 percent of industry assets, 93 percent of life insurance premiums, and 97 percent of annuity considerations in the United States. Learn more at www.acli.com.