DPL Financial Partners releases statement on final DOL Retirement Security Rule
23 Abril 2024 - 5:13PM
Business Wire
DPL Financial Partners, the leading platform for commission-free
annuities, applauds the Department of Labor’s Retirement Security
Rule, released today. Among other things, the rule defines who is
required to act as a fiduciary when making investment
recommendations to retirement investors. DPL Financial Partners CEO
David Lau released the following statement:
“Investment recommendations for retirement
savings need to meet a fiduciary standard—this should be
self-evident and inarguable. Retirement is a critical and
vulnerable financial time for most Americans, and they need to be
confident that their financial advisor is giving them the best
advice for their circumstances.
“We applaud the Department of Labor’s
Retirement Security Rule as an important step toward ensuring that
retirement investment advice is delivered in a fiduciary manner.
The rule adds a critical layer of definition and transparency,
which will provide retirement investors with assurance they are
receiving advice in their best interest and an understanding of how
the person making a retirement investment recommendation is being
compensated.
“We strongly believe this rule will increase
the availability of fiduciary retirement advice and solutions.
Oftentimes regulation can spur market innovation. Over the past
several years, insurance carriers have been bringing
commission-free products to market for fiduciary advisors to use
with their clients at the same time as advisors increasingly
embrace fee-based compensation models and fiduciary commitments;
this rule will only accelerate that innovation and transition.
“Annuities are critically important financial
tools for retirement savers tasked with funding retirements that
can span 30 years or more. But a non-fiduciary sales approach has
tarnished their reputation and limited adoption. High costs and
misaligned sales incentives have led to consumer mistrust and
misunderstanding of these products; commissions are at the root of
these problems. The insurance industry has lagged behind the larger
trend: Most of financial services has moved away from commissions
to fee-based, fiduciary models and it is only a matter of time
before consumers demand that insurance does the same.
“The Retirement Security Rule reflects common
sense best practices. It is time for the industry to put consumers
first by aligning with modern compensation models and transparent
business approaches. This rule is a win for retirement investors
who need advice they can trust. In the short term, it will protect
investors from impacts of conflicted advice. In the long term, it
will reduce consumer skepticism and engender trust, which will
instill consumer confidence in these important products. DPL is
committed to supporting carriers, investment professionals, and
firms as they work to meet the requirements and realize the
benefits of the new rule.”
About DPL Financial Partners
DPL Financial Partners is the leading insurance marketplace
bringing best-in-class solutions from the nation's top carriers to
registered investment advisors (RIAs), their clients and consumers.
DPL's products, proprietary tools and embedded technology enable
RIAs to incorporate insurance and annuities into their practices to
more holistically serve their clients. Clients benefit from
products that offer competitive pricing and transparent, fiduciary
implementation to meet a range of needs in the financial plan.
www.dplfp.com
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Greg Joslyn, The Lowe Group
greg.joslyn@lowecom.com (414)-376-7275