SEC Proposal Has Agents Balking

Life insurance agents are cponcerned about a proposed change emanating from Dodd-Frank.

At a congressional hearing this week, insurance industry representatives weighed in on a Securities and Exchange Commission study mandated under the act that recommends creating a common fiduciary standard of care for broker-dealers and investment advisors.

National Association of Insurance and Financial Advisers President Terry Headley testified that simply applying the SEC's existing investment advisor fiduciary standard to broker-dealers would not be appropriate.

"Any new standard contemplated by Congress or regulators should recognize and adapt to the differences between broker-dealers and registered investment advisers or else risk adverse, unintended consequences namely, limiting the products and services available to middle-market investors," Headley said.

Barbara Roper, director of investor protection for the Consumer Federation of America, said industry concerns were overblown.

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