The DOL’s Latest Fiduciary Rule Proposal

As many of you are aware, on October 31, 2023, the Department of Labor released its latest fiduciary rule proposal, which it refers to as “Retirement Security Rule,” updating the definition of an investment advice fiduciary under the Employee Retirement Income Security Act. This proposal would extend fiduciary obligations to financial professionals recommending and executing rollover transactions, and specifically names fixed index annuity sales as an area in need of further regulation and oversight. 

At American Equity, we are disappointed in this proposed change. We are still reviewing the 500+ page document to fully understand the scope and impact of this proposal, and we will continue to communicate with you as we learn more. 

As a long-standing fixed index annuity carrier, we know that our agents overwhelmingly do act in their clients’ best interest. We’re joining with many other partners in the industry, including National Association of Fixed Annuities and Insured Retirement Institute, to advocate on behalf of our industry, our agents and our contract owners. 

Fixed index annuities are long-term retirement products that have helped many Americans plan for income in retirement and balance their retirement portfolios with benefits like principal protection, tax-deferred growth and guaranteed income that cannot be outlived. These benefits directly address retirees’ needs and fill in key gaps in many retirement plans. 

We stand behind our products, our value, and our partners. As discussions on the fiduciary rule continue, American Equity will continue to advocate on behalf of insurance agents throughout the country.