Thursday, December 31, 2015
Under a new proposal for financial planners created by the Department of Labor (DOL) all advisors and salespersons will be automatically elevated to level of fiduciary. This will mean that they will have to disclose any compensation that they earn from the sales or services that they provide to their clients. If these new proposed regulations are implemented this will have a huge impact on the annuity industry. There is opposition to these new proposals from within the industry with claims that the new requirements will lead to higher costs. Congress will have to eventually decide on whether to adopt the DOL proposals. People within the annuities industry that will be impacted by these proposed regulations will be eager to find out what the outcome is.
See Mark P. Cussen, What the Fiduciary Proposal Means for Annuities, Investopedia, December 31, 2015.