Indexed Annuity Leadership Council Releases Statement on New DOL Regulations
The Indexed Annuity Leadership Council (IALC) today reacted to the release of new regulations by the Department of Labor (DOL) that will significantly expand the reach of the pension law’s fiduciary obligations. The new rules will impose a high legal standard on almost anyone offering a financial product or advice to an ERISA plan participant or IRA holder.
“We are disappointed by the decision of the DOL to treat Fixed Indexed Annuities (FIAs) differently than every other fixed annuity product,” said Jim Poolman, Executive Director of the IALC. “Despite countless meetings, three comment letters, and public testimony before DOL, the final rule mischaracterizes FIAs and imposes rules that make no sense.”
“At first blush, it appears that this rule discriminates among similar insurance products without any rational basis. As a result, it will harm millions of Americans who need the lifetime guaranteed income that these annuities offer, and it will impose significant financial burdens on thousands of small businesspersons who offer sound financial advice to working Americans.”
“We are still digesting the final rule as it spans more than 1,000 pages. In the days and weeks ahead, the IALC and its member companies will continue its analysis and explore all options to address the rule’s deficiencies.”
About the IALC
The Indexed Annuity Leadership Council (IALC) brings together a consortium of life insurance companies with a commitment to providing consumers, the media, regulators and industry professionals complete and factual information about the use of indexed annuities. Namely, that these products provide a source of guaranteed income, principal protection, and interest rate stability in retirement as well as balance to any long-term financial plan. To date, IALC member companies have more than 1.3 million policies in force with more than $84 billion in assets.
