News | 08.05.19
New York State Implements Best-Interest Standard for Annuity Sales
New York state has implemented new rules that require broker-dealers selling annuities to operate in the best interest of their clients. Implementation comes months before any action is expected on a proposed New York State fiduciary rule for investment professionals. Following the demise of the U.S. Labor Department fiduciary rule, the SEC took up the mantle and last month approved Regulation Best Interest (Reg BI). New York State Assemblyman Jeffrey Dinowitz, who had previously introduced a state fiduciary rule, New York City Comptroller Scott Stringer and State Sen. Brad Hoylman called Reg BI “backwards regulation” that will serve “the best interest of only bankers and brokers who will use these regulations to profit at the expense of their clients.” Dinowitz is expected to reintroduce his legislation in January 2020, several months before Reg BI takes effect.
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