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.