The fiduciary rule has only been partially in force for a few days, and yet it is already starting to dig its tentacles further into the financial system. Alongside the changes brought in by the DOL, the insurance industry might be about to see more big shifts. The National Association of Insurance Commissioners has just formed a working group to look into replacing the current suitability standard with a best interest standard for annuities. Inspired by the fiduciary rule, they want to implement some sort of fiduciary standard for annuities across all fifty states.
FINSUM: The DOL rule is already creeping into all areas of the wealth management industry and it has only been around for a few days. One wonders how far this rule will go before it is potentially revised or replaced by the SEC. Are all accounts next?