Washington, D.C. (Jan. 8, 2024)
不良研究所官方 Submits Comments on DOL鈥檚 Proposed Fiduciary Rule
The National Association of Insurance Commissioners (不良研究所官方) on December 21, 2023, provided the U.S. Department of Labor (DOL) with comments on the DOL鈥檚 proposed 鈥淩etirement Security Rule: Definition of an Investment Advice Fiduciary鈥 and proposed amendments to the prohibited transaction exemptions (PTEs) (collectively, the 鈥淧roposed Rule鈥). The DOL announced its October 31, 2023.
The 不良研究所官方 typically does not comment on rule proposals of fellow regulators but decided to do so in this case because the DOL鈥檚 proposal has the potential to significantly impact insurance consumers and access to lifetime income products in retirement.
鈥淲e are disappointed that the DOL did not engage or coordinate substantively with 不良研究所官方 members鈥攖he chief insurance regulators from the 50 states, the District of Columbia, and the U.S. territories鈥攂efore promulgating the current Proposed Rule. While DOL has interacted with 不良研究所官方 staff and members, those discussions were focused almost exclusively on aspects of the 不良研究所官方 model and provided no opportunity for discussion of DOL鈥檚 own work or thinking,鈥 the 不良研究所官方 wrote.
鈥淲hile we acknowledge administrative limitations on DOL鈥檚 ability to share or discuss rule text, substantive policy questions can and should be discussed with fellow regulators, even if in the abstract, to avoid duplication or conflict. DOL should demonstrate interest in coordination and harmonizing our respective rules given their overlapping impact on the same population of companies, industry participants, and customers. Only after the Proposed Rule text was released did DOL engage directly with insurance commissioners, albeit with a limited 30-day exposure period to assess the rule already underway.
鈥淲e are also greatly disappointed in, and fundamentally disagree with, the Administration鈥檚 characterization of state consumer protections around annuity sales as 鈥榠nadequate鈥 and providing 鈥榤isaligned incentives.鈥 The rationale and justification for DOL鈥檚 work should stand on its own as complementary to robust state efforts, and not mischaracterize differences in regulatory philosophy as an absence of regulatory competence or efficacy in this space,鈥 the 不良研究所官方 wrote.
The full comment letter can be read here.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (不良研究所官方) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the 不良研究所官方, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. 不良研究所官方 staff supports these efforts and represents the collective views of state regulators domestically and internationally.