
Washington, D.C. – September 9, 2023: Finseca’s CEO Marc Cadin issued the following statement after the Department of Labor began the process of proposing a new fiduciary regulation by initiating a review at the Office of Management and Budget (OMB):
“We have a $12 trillion dollar protection gap, and there are tens of millions of Americans with little to no retirement savings,” said Marc Cadin, CEO at Finseca. “Finseca, as our name describes, is all about delivering financial security to all, but achieving that is only possible if we’re all working together towards that goal. We need policymakers and regulators to come alongside financial security professionals so the work they do can reach more people, not less.
“We took enormous strides forward earlier this year when we got SECURE 2.0 signed into law with overwhelming bipartisan support. But if DOL is successful in moving this misguided rule forward again, it would unquestionably harm consumers and monumentally set back our efforts. DOL’s initiative, put simply, would enhance the regulatory burden on the very men and women working to help people find peace of mind. Fewer Americans will have access to the very advice and products they need to achieve financial security.
“President Biden knows the struggle so many are facing. Last July, he reminded us: ‘People around the country wake up every day wondering whether they’ve saved enough to provide for themselves and their families before they stop working.’ He asked us to, ‘Think of all the people saying, “Am I going to be all right? Is my family going to be all right? Is my wife or my husband or my child, are they going to be okay?’
“Financial security professionals put an end to those worries. And, as a recent Ernst and Young study shows, life insurance, especially permanent policies, investments, and deferred income annuities out-perform investment-only or investment-plus-other-products approaches, in every combination. Individuals and families who have life insurance, investments, and guaranteed streams of lifetime income through things like annuities are in a significantly better position to absorb the challenges that life throws their way.
“We need to be encouraging more Americans to pursue holistic financial plans. We need to be connecting more Americans with financial security professionals. We need to exponentially grow the financial security profession and make their jobs easier, not harder. And, we need to remember that our work will only be done when every American can put their head comfortably on their pillow at night knowing they’ve got a plan in place and they’re going to be okay.”
“Lastly, though likely well-intentioned, it shouldn’t go without saying that this DOL effort is a solution in search of a problem that has already been addressed. Since the Department’s last attempt to do this, there are now 40 states (representing more than 70% of U.S. consumers) that have adopted the best interest enhancements to the NAIC Suitability in Annuity Transactions Model Regulation, and the SEC’s adoption of Reg BI, which greatly enhanced the standards financial professionals must follow.
“We look forward to working with the DOL, OMB, and President Biden and his team to make sure we get this right by expanding access and choice – not limiting it.”
About Finseca
At Finseca, we know that financial security improves people’s lives and protects their livelihoods and future wellbeing. We are rising to the challenge of increasing financial security for all. Finseca represents the men and women of the financial security profession who dedicate themselves to delivering financial security to their clients every day.
Media Contact
Maggie Seidel – (c) 202-718-7774 | mseidel@finseca.org