IRI URGES NAIC TO PROCEED COOPERATIVELY WITH SEC ON SUITABILITY

Posted on February 18, 2019

Continued Coordination with SEC “Essential to Achieving Regulatory Consistency”

IRI Comment Letter
Joint Trades Comment Letter

WASHINGTON, D.C.
– The Insured Retirement Institute (IRI) filed comments today on a crucial state regulatory model affecting annuity transactions. The National Association of Insurance Commissioners (NAIC) is working to revise its “Suitability in Annuity Transactions Model Regulation” that is the basis for regulations currently in effect in 49 jurisdictions across the nation.

IRI commended NAIC officials for collaborating with the U.S. Securities and Exchange Commission, which is working on a national standard of conduct for securities professionals providing personalized investment advice to retail consumers. The NAIC Model Regulation addresses the same issue but in the context of insurance agents.

“IRI has long supported the principle that financial professionals should be required to act in their clients’ best interest when providing personalized financial advice,” said
Wayne Chopus, IRI president and CEO.

He added, “Requiring financial professionals to act in their clients’ best interest may encourage more investors to seek out the financial advice they need to better prepare for retirement. As Americans continue to live longer than ever before and access to defined benefit plans continue to diminish, it is critical that they receive the financial advice necessary to protect against longevity risk.”

IRI filed its own comments and was joined by other financial services organizations on an additional submission of comments to express concerns on several issues of common concern.

“We view the work being done to enhance the Suitability Model as more than just raising the bar for insurance producer conduct. It is an opportunity to build and grow trust between producers and consumers,” IRI wrote.

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Contact: Dan Zielinski