The FIDx Five: A Fiduciary Redo?
Retirement, Annuity, & Fintech Insights
Could the DOL try to rewrite all the rules again? Some are getting ready for the possibility of another shot at a drastic rehab. Discover why, and then check out four more stories that jumped out this week in the latest edition of "The FIDx Five."
Prepping for a New Rule
Are more changes coming from the DOL? Some in the industry are afraid it’ll soon modify or eliminate a current exception allowing for one-time annuity recommendations.
Source: Financial Advisor, “Annuities Industry Worried About 'Worst-Case' DOL Fiduciary Redo, Attorney Says,” 2/9/23
A Return to the S&P 500 Index
Hybrid indexes were all the rage for fixed-income annuities—until end-of-the-year volatility pushed many back to the familiar. In Q3, 41.4% of funds went into hybrid indices, down from 60.1% the previous year.
Source: LifeAnnuitySpecialist,“Amid Plethora of Indexes, Annuity Buyers Return to the Familiar,” 2/15/23
A $3 Billion Problem
Elder fraud is being addressed again with a new bill circulating through the US Senate. It could postpone requested redemptions for up to 25 days if it’s believed to be done to exploit seniors.
Source: CNBC, “Elder financial fraud is a $3 billion-a-year problem. This bill in Congress aims to help prevent it,” 2/15/23
In-Plan Annuity Market Explosion
A new LIMRA report proposes annuities in retirement plans will grow exponentially in the next two years. Projections predict an annuity explosion could come at the end of 2023 into 2024.
Source: 401k Specialist, “In-Plan Annuity Market Will Grow Exponentially Over Next 2 Years: LIMRA, 2/16/23
Greater Burden on First Move Traders
A new SEC proposal for mutual fund pricing has gotten push back from various industry associations. It could alter how funds are managed, priced, bought, and sold.
Source: Plan Adviser, “Retirement Industry Pushes Back on SEC Swing Pricing Proposal,” 2/15/23
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