Focus on outcomes, not mythical legal jargon, says Finseca CEO
If the final version of the Retirement Security Rule stoked the fire within Marc Cadin, the CEO of Finseca, the subsequent InvestmentNews editorial fanned the flames.
In a phone interview, the leader of an organization that represents more than 9,000 financial security professionals who provide life insurance and retirement planning solutions, criticized the Department of Labor’s process, which he again branded “unAmerican”, took aim at those who think being a fiduciary always leads to better outcomes for consumers, and said this publication’s editorial, headlined “Fiduciary commitment should be table stakes”, was based on a “flawed premise.”
He also said he will be recommending litigation against the new rule to his board and, personally, believes it will be successful.
The Department of Labor’s new fiduciary rule will for the first time subject many agents selling annuities to the Employee Retirement Income Security Act, holding them to the legal fiduciary standard of advice.
InvestmentNews stands by its editorial and its stance on the rule. But as a platform for news and views from across the industry, is open to debate and willing to offer Cadin a right of reply.
In doing so, Cadin explained his belief that the argument for the fiduciary rule, as set out by InvestmentNews and other proponents, mistakenly focuses on legal jargon instead of outcomes for consumers.
“The table stakes, if you will, should be how we increase the financial security of the American people,” he said. “That should be everybody’s objective. It should be the Department of Labour’s objective, it should be [InvestmentNews’] objective, it should be the industry’s objective.
“In our opinion, [consumers] become more financially secure when they get
Read more on investmentnews.com
