California is on track to become the latest US state to adopt a standard for annuity sales that’s weaker than federal fiduciary obligations for 401(k) rollovers.
Together with New York, the bill (SB 263) in California had stood out by insisting on a tougher fiduciary code of conduct for carriers and agents. But the legislation’s authors bowed to industry opposition to the fiduciary standard last month, putting California on track to become the 40th state to instead adopt the National Association of Insurance Commissioners’ best-interest model.
The difference between best-interest and fiduciary investment advice is fundamental to insurers ...
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