GUEST BLOGGER
Gary Sanders, Vice President of Securities and State Government Relations, NAIFA
NAIFA President Terry Headley and President-elect Robert Miller, along with NAIFA Government Relations staff members Gary Sanders and Jill Hoffman, met on December 15-16 with SEC Chairman Mary Schapiro and SEC Commissioners Luis Aguilar, Kathleen Casey, Troy Paredes and Elisse Walter. The purpose for the meetings was to continue NAIFA’s discussions with the SEC regarding the possible implementation of an SEC rule imposing a fiduciary duty of care upon the activities of registered representatives of broker-dealers, as authorized by the recently-enacted Dodd-Frank financial services reform legislation.
During the meetings NAIFA discussed with the Commissioners the possible impact on middle-market investors if a new standard of care for registered reps were to be adopted, and NAIFA expressed its concerns that the end result for these investors could be reduced access to the important advice and services currently being provided by their financial advisors. Headley and Miller also presented the Commissioners with the results of a recent survey of NAIFA members and consumers conducted by LIMRA International on behalf of NAIFA. The study showed, among other things, that middle market investors are a core client base for NAIFA members, and that the costs associated with the imposition of a universal fiduciary standard could result in many NAIFA members being forced to discontinue providing some services to their middle-market clients.
These meetings with the SEC leaders represent a continuation of NAIFA’s ongoing efforts to increase the breadth and scope of its working relationship with the important securities regulators at both the SEC and FINRA. Headley and Miller also used these meetings as an opportunity to introduce the individual Commissioners to NAIFA and to inform them of the valuable services NAIFA members provide to their clients.