We are very pleased to announce that Senator David Perdue has agreed to be primary author of a letter to Secretary Acosta similar to the House of Representatives Stivers and Cleaver letter to Secretary Acosta. This is a very big step forward in the FACC Campaign’s mission to ensure the fair treatment of FIAs under any implementation of the Department of Labor’s Fiduciary Rule.
If you live or have a business in Georgia, please take a moment to send Senator Perdue a letter thanking him for his support and leadership. You can do so by simply clicking on the foregoing link. If you prefer to call him, his DC office number is (202) 224-3521 and his Atlanta number is 404-865-0087.
The letter from Senator Perdue to Secretary Acosta urges DOL to make one very important revision to the Fiduciary Rule Exemptions which is to move FIAs back from the Best Interest Contract Exemption (BICE) to Prohibited Transaction Exemption 84-24 (PTE 84-24).
By returning FIAs to PTE 84-24, FIAs would be grouped properly with other fixed annuities and not securities products. Subjecting FIAS to ill-fitting BICE requirements that are oriented towards the securities industry’s framework and practices would put these popular products at a severe disadvantage in the retirement marketplace and harm consumers’ ability to save conservatively with insurance guarantees of lifetime income and protection from market losses.
Returning FIAs to PTE 84-24 would still offer consumer protections by requiring sellers to follow the impartial conduct standards that embody the Rule’s principal protections. But it would avoid unintended consequences of depriving consumers of one of the leading products available to attain retirement security.
The FACC Campaign will continue to seek additional signatures from Senators and House members. Your role in that process is critical. Please stay informed by checking back on our website often. And thank you for being engaged and active in our efforts to protect these critical retirement products.