Best Interest

Peirce urges patience on the part of the states over Reg BI

Bill Mandia presents at National Conference of Insurance Legislators on fiduciary developments

As previewed by ThinkAdvisor, Bill Mandia presented this past weekend at the National Conference of Insurance Legislators Spring Meeting in Nashville. Accompanying Rep. Joe Fischer (KY) and Rep. Martin Carbaugh (IN), Bill discussed the federal and state approaches to the sale of annuities and other retirement savings products.

Reg BI (heavily) criticized at House hearing

House Financial Services Committee Hearing on Reg BI

Today, the House Financial Services Committee held a hearing on SEC Regulation Best Interest. Here is the the Committee Memorandum.

Our interview with The Intercept

Reprising Peirce’s “What’s in a Name” Speech

SEC Commissioner
Hester M. Peirce

Last July, SEC Commissioner Hester Peirce discussed in a speech the differences between the best interest standard within Regulation Best Interest and an adviser’s fiduciary duties. She said, in part:

In comparing the proposed Regulation Best Interest standard as well as a broker-dealer’s other requirements under the securities laws to an adviser’s fiduciary duty as described in the proposed interpretive release, only two differences stand out.  First, an adviser generally has an ongoing duty to monitor over the course of its relationship with its client, while a broker-dealer generally does not.  Second, a broker-dealer must either mitigate or eliminate any material financial conflict of interest it may have with its client.  An adviser is required only to disclose such a conflict.  Rhetoric aside, arguably proposed Regulation Best Interest would subject broker-dealers to an even more stringent standard than the fiduciary standard outlined in the Commission’s proposed interpretation.

Mixed signals from the states?

Fiduciary Governance Group featured in InsuranceNewsNet Magazine regarding the multiple “best interest” legislative and regulatory state proposals on annuity sales

InsuranceNewsNet Magazine just published an insightful article on the various state best interest proposals regarding annuity and insurance sales within the broader NAIC context. The Fiduciary Governance Group’s analysis was featured.

Bill Mandia & George Michael Gerstein discuss fiduciary developments

State regulators criticize Reg BI