May 4, 2016
An open letter to the members of ACLI:
According to recent news reports, the board of ACLI will meet this week to decide whether to pursue a lawsuit challenging the Department of Labor’s recently finalized conflict of interest rule. We are writing on behalf of organizations that advocate for consumers, workers, and retirees to urge companies like yours to oppose a lawsuit and to affirm your willingness to act in the best interest of your clients under the DOL rule.
Our message: Tell ACLI leadership that you don’t support a legal challenge to overturn the Department of Labor (DOL) rule.
Why is a legal challenge unnecessary? DOL has work conscientiously to address legitimate concerns about the rule’s workability. Toward that end, the Department has:
- made the best interest contract easier to administer;
- clarified that firms can market their services without worrying about whether they’ve crossed the line into fiduciary advice;
- scaled back disclosure obligations;
- further clarified that advisers can recommend proprietary products and lifetime income products under the rule;
- extended the time for implementation and offered to provide additional guidance to help firms through the implementation process.
In light of all the changes made, the only remaining reason to oppose the rule is to try to avoid having to put the interests of the customer first and rein in practices that conflict with that goal.
We are confident ACLI will not be speaking for you if they decide to pursue a costly and anti-consumer court battle. If you truly believe that retirement savers deserve advice that is in their best interests, tell the leadership at ACLI to drop plans to challenge the rule. By speaking out against a lawsuit you’ll be sending a message to your customers as well – that your commitment to their financial well-being is real.
Call ACLI today at 202-624-2000 and let your voice be heard!