Insurers push pols to study broker regulation

[struggle4progress]

Critics claim that the move to lobby senators is intended to delay passage of rules requiring uniform fiduciary standard
By Sara Hansard
January 17, 2010, 6:01 AM EST

With the Senate set to reconvene this week, the insurance industry is stepping up its efforts to encourage members of the Banking Committee to support a comprehensive study into whether brokers should be forced to adhere to a fiduciary standard.

Since December, the American Council of Life Insurers, the National Association of Insurance and Financial Advisors and other insurance groups have been quietly pushing for a study aimed at uncovering regulatory deficiencies with regard to brokers who provide investment advice. The Securities and Exchange Commission, which the insurance groups hope will be charged with overseeing the study, would then be expected to issue rules to remedy those deficiencies.

Critics contend that such a study is unnecessary and is intended to delay the passage of regulations that would hold all advice givers — whether they call themselves brokers or investment advisers — to a uniform fiduciary standard.

“A study is simply a way to prevent extension of the fiduciary duty,” said Neil Simon, vice president of government relations for the Investment Adviser Association. “It is simply a means to try to kill the effort to extend the fiduciary duty to all those who provide investment advice" ...

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20100117/REG/301179979/1029/INSURANCE

[bemildred]

1. It does sound like a stall.

The last thing the financial elites would like is to be forbidden to shear the sheep.