Regulatory Cutbacks: The Good, The Bad and The Ugly:

Consumer financial protections are going to be changed.

The Good: State insurance commissioners consider strengthening annuity sales rules. Annuities are at their core, a product that can be a valuable core to retirement planning in addressing longevity risk as long as they are kept simple such as a Single Premium Immediate Annuity, however, the majority of annuities on the marketplace come with high expenses, high (and sometimes permanent) surrender charges and are overwhelmingly complex.

The Bad: The DOL Sends Mixed Signals With Fiduciary Rule Delay with the potential bottom line is that part of the Fiduciary Rule will be implemented and some of it delayed indefinitely or not implemented at all. The offset is that according to Fitch: Insurers have made ‘enduring’ changes because of Labor investment adviser rule.

The Ugly: The CHOICE act bill recently introduced in the House would roll back portions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and could effectively render it useless. Also included would be major changes to the Consumer Financial Protection Bureau that would curb it’s ability ability to make and enforce consumer protection rules and punish those who break the rules. These measure were put into place after the 2007 financial collapse. Learn how consumer financial protections could be rolled back. Yes, history does like to repeat itself.

Consumers need to make their voices heard and let their legislators know that they want these protections so if you agree, contact your Representatives and Senators. You can also sign the petition to enact the Insurance Bill of Rights and please share the petition. We can all make a difference if we choose to.

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