December 1, 2017 • Tracey Longo
“Yes,” National Association for Fixed Annuities Counsel and Director of Government Affairs Pam Heinrich said when asked if the association would proceed with its lawsuit to vacate the DOL rule, even after the agency’s 18-month delay. “Absent changes on how the rule will go into effect in July 2019—something that hasn’t happened as of yet so we can not count on—NAFA needs to continue the fight in the court system,” Heinrich told Financial Advisor Magazine.
“After the 18-month delay ends, in the event that there are no further changes to the rule, our industry will be irreparably harmed because we will be bifurcated under two separate exemptions [for disclosing commissions and potential conflicts of interest]: BICE [Best Interest Contract Exemption] for fixed-index annuities and PTE 84-24 for fixed declared rate annuities. Putting fixed-rate annuities under BICE will harm our industry and also consumers—everyday Americans who benefit from these retirement savings products,” Heinrich said.
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