04.29.20

FSI, SIFMA Ask Iowa to Defer Their Best Interest Standard to SEC Reg BI

by: Tracey Longo

Securities industry trade groups asked the Iowa Insurance Commissioner Tuesday during a virtual hearing to delay the state's proposed best interest proposal to allow firms to meet the SEC's Regulation Best Interest (Reg BI). The Iowa proposal is based on the model regulation approved by the National Association of Insurance Commissioners earlier this year and requires annuity agents and broker-dealers and their reps to act in the best interest of their customers. “As of June 30, SEC Reg BI will raise the bar from existing FINRA suitability standards and apply to all retail and investment accounts including retirement accounts," said Securities Industry and Financial Markets Association managing director Nancy Donohoe Lancia. "These recommendations are meaningful and substantial.” Dan Barry, director of state legislative affairs at the Financial Services Institute, said, “While the SEC has maintained its June 30, 2020 implementation date, we believe that the next two months continue to present uncertainty and, as a result, a need for flexibility by both firms and regulators.”

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