NAIFA News

NAIFA President Terry K. Headley explains in a new National Underwriter "Feedback" piece how the medical loss ratio (MLR) provision of last year's health care law has shrunk brokers' commissions and made it impossible for many of them to continue vital customer service functions.

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There is no evidence to support the claim that the fiduciary standard has provided consumers superior protection in comparison to the protection provided by the suitability standard. NAIFA believes that all Americans should have freedom of choice on how they access and pay for financial products and services. We therefore support Congress and the SEC for doing the necessary due diligence to ensure a change doesn’t result in unintended consequences for investors.

On March 14, 2011, an SEC “pay to play” rule designed to limit the influence of political contributions by investment advisers and certain associated persons in the awarding of advisory contracts by state and local governments went into effect.

Most see commissions reduced by 25 to 50% or more since implementation of medical loss ratio provision. Some are leaving the business, while others cut staff and client services to survive.

On March 14, 2011, an SEC “pay to play” rule designed to limit the influence of political contributions by investment advisers and certain associated persons in the awarding of advisory contracts by state and local governments went into effect.

More than half of pre-retireees with incomes between $25,000 and $75,000 had no contact with a financial advisor over the past 12 months, according to a survey by the Bankers Life and Casualty Company's Center for a Secure Retirement (CSR).