NAILBA Perspectives Winter 2019 | Page 31

run in 2020, as could New York Governor Mario Cuomo. Massachusetts Senator and likely presidential contender Elizabeth Warren has also made the best interest standard a centerpiece of her agenda to reform the financial services industry. How the issue plays out in the states will continue to be a problem, even if RBI establishes a standard centered on disclosure. Considering the many states that responded to last year’s court ruling on the Department of Labor rule by writing their own legislation and regulations mirroring the standards of conduct and responsibilities established under the DOL rule, there’s nothing to stop state securities administrators from promulgating more stringent rules in response to what they view as a watered-down standard of care for variable products. Standards of care is a hot-button issue that some policymakers see as a way to demonstrate to their constituencies that they are “tough on Wall Street” when the reality is that many middle-income investors will find themselves with limited investment options or having to pay exorbitant fees for financial planning services. This is why consistent outreach to your state and Federal legislators is important and needs to be incorporated into your routine. If policymakers don’t learn from you, they won’t have the information to make informed and rational decisions. It’s possible some of your legislators may have preconceived notions that don’t align with the realities and nuances of complex policy issues affecting brokerage, but your efforts to advocate and educate have the potential to at least get some of them to back down rather than double down on terrible policy decisions that will have a severe impact on your ability to do business. “ If policymakers don’t learn from you, they won’t have the information to make informed and rational decisions ” www.nailba.org 31