Advocacy in action blog

The Federal Trade Commission voted 3-2 along partisan lines at an April 23 open Zoom meeting to approve its final Non-Compete Clause Rule which will ban most non-compete agreements.

The 570-page Final Rule becomes effective 120 days after it is published in the Federal Register unless a court issues an order staying that effective date while it considers challenges to the Final Rule. The Final Rule is expected to be published on April 25, 2024, and it would then become effective on August 23, 2024. Legal challenges are, however, expected to be filed immediately.

The Department of Labor and the White House have released a final fiduciary-only rule after an astonishingly brief regulatory and review process and in spite of grave concerns expressed by NAIFA, members of Congress, and other stakeholders. Unless Congress or the courts intervene, the rule will force the vast majority of financial professionals offering retirement planning services and products into a fee-for-service model. It will deprive consumers of the valuable option of working with professionals operating under alternative models that may better meet their needs.

The NAIFA-Arkansas Board of Directors hosted a dinner with the state legislature's joint House and Senate Insurance & Commerce Committees. Attendees included highly influential elected officials whose decisions impact financial professionals and consumers throughout the state. At least two of the lawmakers are practicing financial professionals, who naturally understand the issues that go before the committees.

NAIFA continues efforts to discourage the Department of Labor and the administration from moving forward with its flawed fiduciary-only rule. In a letter to DOL Acting Secretary Julie A. Su, Office of Management and Budget (OMB) Director Shalanda Young, and Office of Information and Regulatory Affairs (ORIA) Administrator Richard Revesz, NAIFA and 10 other groups detailed problems with the rule's regulatory process and asked the administration to "stand up for the integrity of the regulatory process and continue the public input process, rather than finalize the fiduciary rule now."

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.”

NAIFA members are often at the forefront of efforts to improve Americans' financial literacy. From educating their clients to volunteering in local schools and their communities to promoting April as National Financial Literacy Month, NAIFA members are giving Americans intelligent insights into money matters. This even extends to their political advocacy.

The 2024 Congressional Conference is coming to Washington, D.C., May 20-21. This is NAIFA's can't-miss signature grassroots event and the most impactful association fly-in in the insurance and financial services industry. See who is attending. If your name is not on the list, register today to have it added. If you know of colleagues who might like to attend, why don't you give them a friendly nudge? The more people we have in Washington advocating for our businesses, clients, and communities the more influential we are.

The administration’s final rules on short-term, limited-duration health insurance (STLDI) plans will restrict access to these policies that serve crucial needs of many American consumers. The plans, which have existed since the introduction of HIPAA-based rules nearly two decades ago, are designed to bridge the gap between comprehensive coverage options. They can be a great fit for those looking for individual coverage, waiting for the start of group plan enrollment, having gaps between different employment opportunities, or waiting for their next open enrollment opportunity.

NAIFA’s Congressional Conference is where you get to advocate for your business, peers, clients, and communities right at the heart of policy-making in Washington, D.C. It’s a direct line to influencing the decisions that affect millions who depend on your guidance. Engaging with Congress members this May isn’t just about representing your own interests; it's about voicing the collective needs of the financial services industry and the families and businesses that rely on you.