February 19, 2018
New York’s proposed best interest standard for annuities and life insurance
On Monday, November 27th the United States labor department postponed from Jan. 1, 2018, to July 1, 2019, the fiduciary rule that established the applicability of a legally binding contract between brokers and retirement-account clients that requires brokers to act in a CLIENT’s best interests, among other disclosure provisions and prohibited-transaction exemptions.
To combat the postponement of the fiduciary rule by the Trump administration, New York State has proposed a New York Law that attempts to make brokers act in the best interests of their clients rather than the BROKERS best interest. While not perfect, the proposed New York law is a step forward in protecting citizens rights to receiving fiduciary advice that serves the citizens needs. In response to the NYS proposal the Consumer Federation of America wrote a response on how to strengthen the proposed law. Read the Consumer Federation of America’s response here.