The DOL Rule: As Expected – More Questions Than Answers
MESSAGE FROM NAFA
One year after the proposed DOL rule came out in April of 2015, the final DOL rule was officially released on April 8, 2016. This was after thousands of comment letters from different organizations and hundreds of thousands of emails. There were letters and phone calls from consumers, agents and registered representatives from all areas of the financial services business. Unfortunately, the final rule from the DOL is more onerous and unworkable. A year ago, the proposed rule was approximately 250 pages. The final rule is now over 1,000 pages, outlining how the financial services industry should make the sales process better for the consumer’s retirement planning.
This is our government at work, making a process so complicated that people are confused and likely driving financial advisors, insurance agents and companies out of business. Similar to the massive IRS tax code, the retirement planning process for the consumer will be so complex that people will dread this important decision like they hate doing their taxes each year.
NAFA has been working for the last 14 months to solve this problem with our representatives in Washington, D.C. with limited success. We have tried to work through the system and joined with many other trade groups in the financial services industry to address our concerns with the DOL ruling but the current administration is committed to putting the DOL regulations into effect. NAFA has engaged one of the very best law firms in Washington D.C. to fight this through the courts and we will need your support. This battle will be costly but it will be worth it to keep the government from making the retirement planning process difficult for the American people.
People need the opportunity to have access to fixed annuity products that have guarantees, no downside risk and the option for a guaranteed income that they can’t outlive. Thank you for your support of NAFA and our efforts to keep fixed annuities easily available for consumers.
Executive Director, NAFA