Josh O'Gara, CLU, ChFC, CFP, loyal member since 2011, spoke on behalf of NAIFA during the U.S. Department of Labor's virtual public forum on the classification of employees and independent contractors under the Fair Labor Standards Act. NAIFA strongly supports an exemption for insurance and financial professionals under any legislation or DOL regulation that would reclassify independent contractors as employees.
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NAIFA's O'Gara Asks DOL to Preserve Advisors' Independent Status
By NAIFA on 6/30/22 12:03 PM
Topics: Federal Advocacy Grassroots DOL
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Broker Compensation Disclosure Requirements
By Michael Hedge, NAIFA's Director of Government Relations on 12/27/21 4:39 PM
Beginning on December 27, 2021, brokers and consultants will be held to new compensation transparency obligations under the Consolidated Appropriations Act (CAA). The CAA is a spending and coronavirus relief package that was signed into law on December 27, 2020 and expands ERISA’s existing disclosure requirements. It broadened the definition of a “covered plan” to include group health plans (previously it only included retirement plans).
Topics: Federal Advocacy Compensation Regulation DOL Insurance & Financial Advisor Regulation
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NAIFA and Industry Partners Request Non-Enforcement Period for Sec. 202 of the No Surprises Act
By NAIFA Government Relations Team on 8/3/21 5:09 PM
On Monday, July 26, NAIFA and our industry partners, The Council of Insurance Agents & Brokers and the Independent Insurance Agents & Brokers of America, sent a letter to the U.S. Department of Labor requesting an initial non-enforcement period for Section 202 of the No Surprises Act.
Topics: Health Care Federal Advocacy DOL
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NAIFA's Holzberg: Congress Needs to Hear From Financial Professionals About the PRO Act
By NAIFA on 5/18/21 4:29 PM
NAIFA's Virtual Congressional Conference, May 25-26, is a great opportunity for NAIFA members to tell their Senators how being reclassified as "employees" rather than "independent contractors" by the PRO Act would hurt their businesses and ability to serve the best interests of their clients. NAIFA President Elect Lawrence Holzberg gives his take on why it's important to attend.
Topics: Federal Advocacy PRO Act DOL Insurance & Financial Advisor Regulation Producer Employment
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US Department of Labor Withdraws Independent Contractor Rule
By Mike Hedge on 5/6/21 8:36 AM
The U.S. Department of Labor (DOL) has announced the withdrawal of the “Independent Contractor Rule," effective May 6, 2021.
Topics: Federal Advocacy DOL Insurance & Financial Advisor Regulation Producer Employment
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NAIFA Urges DOL to Move Forward With Rule on Independent Contractor Status
By Mike Hedge on 4/13/21 2:17 PM
NAIFA has joined with industry partners to submit a comment letter to the Department of Labor (DOL) on the proposed withdrawal of the Independent Contractor Status rule under the Fair Labor Standards Act (FLSA). The rule was published on January 7, 2021.
Topics: Federal Advocacy DOL Insurance & Financial Advisor Regulation Producer Employment
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DOL Confirms PTE on Retirement Advice Will Go Into Effect Feb. 15
By NAIFA on 2/12/21 4:50 PM
The Biden Administration has confirmed that the Department of Labor (DOL) will move forward with a prohibited transaction exemption (PTE) for financial professionals who provide retirement plan advice. DOL previously announced the new PTE on December 15 during the Trump Administration. It goes into effect February 15.
Topics: Standard of Care & Consumer Protection Federal Advocacy DOL Insurance & Financial Advisor Regulation
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NAIFA Advocacy Helped Shape DOL Rule on Independent Contractors
By Mike Hedge on 1/6/21 1:20 PM
The U.S. Department of Labor (DOL) announced today a final rule clarifying the standard for employee- versus independent contractor-status under the Fair Labor Standards Act (FLSA). NAIFA has worked closely with DOL to ensure an equitable rule that considers the needs of the insurance industry. NAIFA submitted comments on DOL’s rulemaking on October 26, 2020.
Topics: Federal Advocacy DOL Insurance & Financial Advisor Regulation Producer Employment
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New DOL Rule on Retirement Advice Aligns with the SEC's Reg BI
By NAIFA on 12/15/20 6:24 PM
The U.S. Department of Labor (DOL) has finalized its new prohibited transaction exemption (PTE) for financial professionals who provide retirement plan advice. The PTE requires advisors to work in the best interests of their clients, receive reasonable compensation, and make no “materially misleading statements.” The PTE is effective 60 days after publication in the Federal Register.
The DOL exemption aligns with the Securities and Exchange Commission’s Regulation Best Interest, and preserves opportunities and choices for workers and retirees seeking high-quality, personalized advice.
“NAIFA thinks the Department of Labor proposal – with the modifications in today’s final rule – will benefit retirement investors by preserving access to a wide variety investment advice professionals, products, and compensation arrangements,” said NAIFA CEO Kevin Mayeux. “The Department has struck the right balance between crafting a PTE with robust compliance obligations that serve the interests of investors, while avoiding an overly prescriptive approach or penalizing certain market segments or arrangements versus others.”
The DOL under the Obama administration initially issued a rule that would have imposed a restrictive fiduciary duty on financial professionals and hindered access of middle-market investors to retirement services and advice. NAIFA was among the organizations that filed a lawsuit resulting in the U.S. Court of Appeals for the Fifth Circuit vacating the rule in 2018.
Topics: Standard of Care & Consumer Protection Federal Advocacy DOL Insurance & Financial Advisor Regulation Regulation Best Interest
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NAIFA Submits Comments on DOL’s Proposed Independent Contractor Rule
By NAIFA on 10/27/20 4:34 PM
On October 26, NAIFA filed comments on the Department of Labor’s (DOL) proposed interpretation dictating which workers can qualify for independent contractor status under the Fair Labor Standards Act (FLSA). NAIFA supports DOL’s efforts to formalize existing interpretations, provide greater certainty for the regulated community, and promote opportunities for creating innovative work arrangements.