Washington, D.C. – October 31, 2023: We still await the complete details of the Department of Labor’s fiduciary 3.0 proposal, what we have seen make it clear that it will be an unequivocal step backward for the retirement security of Americans. Finseca’s CEO Marc Cadin issued the following statement after details of the Department of Labor’s new fiduciary rule was released:
“At a time when we need to be encouraging more Americans to pursue holistic financial plans,” said Marc Cadin, CEO at Finseca, “the department is using incendiary and misleading language like “junk fees” to rationalize a third failed attempt to pursue a regulatory result that will limit consumer choice and access to the very advice millions more Americans need in order to achieve financial security.
“As Ernst and Young’s research 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 connecting more Americans with financial security professionals. We need to exponentially grow the financial security profession and make their jobs easier, not harder. We need policymakers and regulators to work with the profession so they can serve more people.
“Lastly, though well-intentioned, it shouldn’t go without saying that this proposed rule is a solution in search of a problem that has already been addressed. Since the Department’s first and second attempts, 40 states (representing more than 70% of U.S. consumers) have adopted the best interest enhancements to the NAIC Annuity Transactions Model Regulation, and the SEC’s adoption of Reg BI, which greatly enhanced the standards financial professionals must follow.”
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
