A message to NAIFA Members:
Throughout September, it has been truly inspiring to witness NAIFA members actively participating in Life Insurance Awareness Month by shining a much-needed spotlight on the tremendous value of life insurance. Your commitment to highlighting the importance of this product while educating millions of consumers on the broader issues of financial literacy helps ensure that Americans understand the many tools available to secure their financial futures.
That is why it is infuriating to see false accusations against dedicated financial professionals who are serving their clients' best interests day in and day out. Highly regulated at the federal and state levels, you often are subject to unwarranted criticism from so-called “financial gurus,” regulatory agencies, and even members of Congress.
The truth is: licensed financial professionals are bound to work in their clients’ best interests by the Securities and Exchange Commission’s Regulation Best Interest. State measures based on the National Association of Insurance Commissioners’ model best interest regulation for annuity transactions create similar consumer protections including a best-interest standard for financial professionals. As of now, 47 states and counting have adopted the NAIC model. NAIFA members also agree to abide by a strict Code of Ethics that includes putting their clients’ interests before their own.
The vast majority of you enter the profession with a strong desire to help people. You become successful because you earn reputations for doing things the right way and working in your clients’ interests.
Consumers need to be able to trust their financial professionals and be confident they are adequately protected. NAIFA fully supported the implementation of Reg BI and has worked tirelessly to promote states’ adoption of the NAIC model. But regulations like the Department of Labor’s rehashed fiduciary-only rule that would limit consumer choices are harmful.
The financial landscape is more complicated than ever for American families and small business owners. They need the assistance of experienced, ethical financial professionals. They also enjoy more robust protections under federal and state regulations than ever in the past. Company compliance offices, regulators, and the courts are well equipped to deal with any unscrupulous actors who may try to flout the law.
I have no doubt that campaigns like September’s Life Insurance Awareness Month brings us closer to bridging the knowledge gap around the products available to secure Americans’ financial futures. Continued attacks on financial professionals dedicated to educating consumers and serving their client’s best interests are simply unwarranted.