NAIFA’s Triple Crown

By Kevin Mayeux, CAE

The magnificent chestnut colt Justify ascended to the Mt. Olympus of Thoroughbred racing earlier this year when he became only the thirteenth horse ever to achieve the vaunted Triple Crown. It was a great achievement for a great competitor.

Meanwhile, at NAIFA, we scored our own triple crown of advocacy victories, though our efforts took a bit longer than the two minutes or so Justify needed to vanquish the field at the Kentucky Derby.

NAIFA’s victories

NAIFA’s run for the roses actually began late last December, when President Trump signed a tax reform law that made no changes to the taxation of life insurance and annuity products, and did not place stricter limits on pretax contributions to retirement plans or Individual Retirement Accounts.

Some members of Congress had proposed that this so-called “Rothification” of retirement accounts should be in House and Senate tax bills. During the tax debate, NAIFA members and staff met with lawmakers and the administration to emphasize that legislation must encourage Americans to plan ahead, protect their families’ financial security, and adequately save for retirement.

Our second win came in March when the Fifth Circuit Court of Appeals decided a lawsuit brought by NAIFA, the ACLI and other groups that vacated the Department of Labor’s fiduciary rule. NAIFA worked with members of Congress, regulators from two administrations and the federal courts to ensure that the rule did not destroy the business of insurance and financial advisors or prevent lower- or middle-income Americans from getting retirement products and advice.

NAIFA hit the homestretch in the final leg of our advocacy triple crown in May when the Senior Safe Act was signed into law as part of a larger legislative package. The law encourages advisors to serve their clients’ interests by acting as a first line of protection against financial fraud and abuse. It provides advisors with a mechanism to report suspected fraud to their companies or broker dealers, which can then investigate the matter and involve regulators or law enforcement if needed.

NAIFA’s advocacy helped ensure that the law provides bona fide benefits for older investors while protecting advisors acting in good faith from liability and other potential consequences.

Upholding the tradition

Justify has not raced since his Belmont States victory, and his trainers are evaluating whether he will return to the track or retire to the stud farm. NAIFA’s future is much more certain. We continue to advocate on behalf of advisors and their clients. We are currently evaluating a best-interest standard proposed by the Securities and Exchange Commission and preparing comments to help the SEC develop a final rule that benefits consumers and places no undue barriers between advisors and their clients.

NAIFA remains vigilant, fulfilling our mission to advocate for a positive legislative and regulatory environment on behalf of our members. If NAIFA members have a horse in the race, it’s a sure bet NAIFA is advocating on their behalf.