An Advocacy State of Mind

NAIFA is in your state capital, and in every state capital, working on your behalf and that of your clients.

By Kevin Mayeux, CAE

Successful financial professionals stay busy. Between client calls and meetings, the day-to-day necessities of running a business, and carving out personal time to spend with friends and family, it’s easy to lose track of how government policies impact your career and clients.

When we do turn our attention to political matters, we often focus on the federal stage. Yet, state-level policies often have just as great an impact on financial professionals’ business success and client relationships.

Fortunately, NAIFA, since its founding 130 years ago, has recognized the importance of state-level advocacy. We are the only association representing producers with: a grassroots network extending through every statehouse and state regulatory agency, 50 separate state-level political action committees, professional advocacy staff in every state and a proven track record of success on state issues affecting financial professionals and their clients across the country.

A quick start to the New Year

I began 2020 with a trip to Boston, where I testified at a hearing before the Massachusetts Securities Division on some troubling aspects of the state’s proposed fiduciary rule for financial professionals. I spoke, along with colleagues from the American Council of Life Insurers (ACLI), the Insured Retirement Institute (IRI), the Financial Services Institute (FSI), and the Securities Industry and Financial Markers Association (SIFMA), about how the regulation will impact Massachusetts consumers and make it more difficult for Main Street investors to obtain products, services and guidance.

The hearing was a showcase of NAIFA’s state advocacy strength. More than two dozen members of NAIFAMassachusetts attended the hearing in support. NAIFA member Adam Sachs, CFP, CLU, ChFC, encouraged two of his clients to participate in the hearing, and they provided compelling and well-received testimony. The next day, Gov. Charlie Baker wrote a letter to Secretary of the Commonwealth Bill Galvin citing many of our concerns and asking him to delay action on the proposal.

Still, the issue is not settled. The regulation remains pending and is likely to be enacted. But NAIFA is exploring options to leverage all three branches of state government — executive, legislative, and judicial — to protect financial professionals and their clients. Stay tuned for updates.

You can feel confident that no matter what the challenge, together, we can take on anything.

Other advocacy efforts

Meanwhile, advocacy efforts in other states advance at a swift pace. A few examples from the early months of 2020 spotlight NAIFA’s state advocacy impact:

• NAIFA-New Jersey promoted two new laws, one empowering financial professionals to protect senior clients from financial exploitation, and the other waiving initial insurance licensing fees for military veterans. Efforts are also ongoing to oppose a fiduciary proposal in the state.

• NAIFA-Maine opposes a proposal that would create a state-run retirement plan to compete with private-sector offerings.

• NAIFA-Maryland held a reception in Annapolis fostering relationships between financial professionals, state lawmakers and regulators.

• NAIFA-Tennessee and NAIFA-South Dakota are advocating for measures to give producers continuing education credits for belonging to a professional association like NAIFA.

Working well with others

State advocacy begins even before legislators and regulators propose bills or rules. NAIFA participates proactively in National Association of Insurance Commissioners and National Council of Insurance Legislators committees, contributing expertise and helping to formulate model statutes and regulations that shape our industry. We influence these models, which states often enact verbatim, from start to finish. We exert our influence to head off bad policies and encourage good ones before they become law.

A new, formal state-advocacy partnership between NAIFA and ACLI builds upon years of cooperation and highlights both groups’ understanding of how state laws and regulations impact our industry. The partnership initially concentrates on seven key states: California, Colorado, Florida, Illinois, Maryland, Massachusetts and New Jersey. As part of the effort, NAIFA has bolstered our state advocacy staff. We are already beginning to see results on issues ranging from fiduciary proposals and state-run retirement plans to senior investor protections and genetic testing and client security proposals.

Federal advocacy victories, such as NAIFA’s work to pass the SECURE Act and see the Department of Labor’s fiduciary rule vacated, often garner bigger headlines, but many more issues affecting the success and prosperity of producers and their clients occur in the states. That is why NAIFA’s unique state advocacy prowess is so important.

Financial professionals can rest assured that NAIFA is in your state capital, and every state capital, working on your behalf and that of your clients. You can feel confident that no matter what the challenge, together, we can take on anything.