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- Recommendation Would Maintain Strong Consumer Protections While Streamlining Compliance
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The NAIC Model Suitability in Annuity Transactions is working to enhance their standard of conduct model regulations for financial advice professionals. The group is working to align those revisions with recent changes to federal standard of conduct regulations reflected in the
The NAIC model regulation currently includes a safe harbor for broker dealers who comply with
In comments to the NAIC, IRI is proposing a change to the safe harbor to add registered investment advisors and financial advisors who work with 401(k) plans, individual retirement accounts (IRA) and other types of retirement plans that are also held to a fiduciary standard of care under the federal Employee Retirement and Income Security Act (ERISA). These financial professionals, as fiduciaries, operate under standards that also meet or exceed the best interest standard in the revised NAIC suitability model.
"We believe it would be appropriate and sensible to afford the same type of safe harbor treatment to all producers who comply with such standards," said