NAIFA is speaking out on behalf of financial professional and, particularly, the consumers who would be harmed by the Department of Labor's latest effort to reduce choices for Americans preparing for retirement. The fiduciary-only proposal, which is largely a rehash of a rule struck down by a federal appeals court in 2018, would radically change the financial services industry and reduce the ability of low- and middle-income retirement savers to access products and services.

The Department of Labor’s (DOL’s) current efforts to revive a fiduciary-only regulation for financial professionals is unnecessary and likely to harm low- and middle-income consumers by limiting their access to professional financial services, National Association of Insurance and Financial Advisors (NAIFA) CEO Kevin Mayeux, CAE, told officials from the Office of Information and Regulatory Affairs (OIRA) of the White House’s Office of Management and Budget (OMB).

“By moving forward with the Proposed Rule, OIRA and DOL are ignoring … the real-world experience that NAIFA members saw first-hand before the 2016 Fiduciary Rule was vacated,” Mayeux said. “If finalized, the Proposed Rule will again force financial professionals to move away from brokerage services into a fee-for-service model that is tailored to higher-income clients. This model simply does not work when a year-round fiduciary duty is imposed.”