The American Council of Life Insurers (ACLI) favors a best interest standard of care initiative consistent with timely and substantial Securities and Exchange Commission (SEC) and state insurance regulators work.
Support statements from ACLI President & CEO Susan Neely were part of documents recently submitted to the House Subcommittee on Investor Protection, Entrepreneurship and Capital Markets for its hearing on
“The core business of the life insurance industry is financial security and retirement security is a critical mission,” Neely said. “ACLI supports rules requiring all financial professionals, when making a recommendation, to act in the consumer’s best interest, with care, skill, prudence, and diligence, based on the consumer’s financial needs and objectives. ACLI also supports rules requiring financial professionals to avoid or reasonably manage conflicts of interest through increased transparency.”
Neely said the position is consistent with National Association of Insurance Commissioners and Securities and Exchange Commission (SEC) initiatives underway.
The ACLI has, however, expressed concern about legislation introduced at the hearing delaying the implementation of SEC disclosure regulations aimed at helping consumers in financial transactions.
The ACLI maintains the Disclosure Effectiveness Testing Act, introduced by Rep. Sean Casten (D-IL), would interfere with the SEC exercising its existing authority to test new regulations as it determines is necessary to protect consumers.