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Fight over U.S. retirement investment advice rule moves to courts
Source: Reuters
Fri Jun 10, 2016 12:36pm EDT
Fight over U.S. retirement investment advice rule moves to courts
BY LISA LAMBERT
The fight over a new federal regulation on advice on investing for retirement is moving from Capitol Hill to the U.S. court system, as the number of lawsuits attempting to stop the rule grows.
Wall Street-affiliated groups, including the U.S. Chamber Of Commerce, last week filed a legal challenge in a U.S. District Court in Texas to the Labor Department's new fiduciary standard that requires financial brokers for retirement products to put clients' best interests ahead of their bottom line.
Since then, a collection of insurance companies sued in the same court on Wednesday, contesting the rule over its treatment of fixed indexed annuities.
The Indexed Annuity Leadership Council, the Life Insurance Co of the Southwest, American Equity Investment Life Insurance Co, Midland National Life Insurance Co and the North American Co for Life and Health Insurance said the new rule would create massive new costs and dislocations.
The rule, effective this week, will "upend the regulatory scheme that has for decades governed the market for fixed indexed annuities," they said in their filing. It will also "necessitate an overhaul of the ways in which these valuable products are sold" and "threaten the availability of these products for the very people the rules are intended to benefit," the filing said.
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Fight over U.S. retirement investment advice rule moves to courts
BY LISA LAMBERT
The fight over a new federal regulation on advice on investing for retirement is moving from Capitol Hill to the U.S. court system, as the number of lawsuits attempting to stop the rule grows.
Wall Street-affiliated groups, including the U.S. Chamber Of Commerce, last week filed a legal challenge in a U.S. District Court in Texas to the Labor Department's new fiduciary standard that requires financial brokers for retirement products to put clients' best interests ahead of their bottom line.
Since then, a collection of insurance companies sued in the same court on Wednesday, contesting the rule over its treatment of fixed indexed annuities.
The Indexed Annuity Leadership Council, the Life Insurance Co of the Southwest, American Equity Investment Life Insurance Co, Midland National Life Insurance Co and the North American Co for Life and Health Insurance said the new rule would create massive new costs and dislocations.
The rule, effective this week, will "upend the regulatory scheme that has for decades governed the market for fixed indexed annuities," they said in their filing. It will also "necessitate an overhaul of the ways in which these valuable products are sold" and "threaten the availability of these products for the very people the rules are intended to benefit," the filing said.
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Read more: http://www.reuters.com/article/us-usa-insurance-fiduciary-idUSKCN0YW1VS
3 replies
= new reply since forum marked as read
= new reply since forum marked as read
to PREVENT 'financial brokers for retirement products to put clients' best interests ahead of their bottom line.'
and they'll put ads up with a 'senior' couple complaining how awful this is/will be!
