On July 25, 2024, a federal court in the Eastern District of Texas issued a stay barring the enforcement of the DOL fiduciary-only rule (and amendments to PTE 84-24) while the case in FACC v. DOL is pending. An appeal of the stay to the 5th Circuit is likely.  

Meanwhile, NAIFA’s challenge to the fiduciary-only rule, brought with ACLI and other industry groups, is under review in the Northern District of Texas, where we seek a preliminary injunction and stay against enforcement of the fiduciary-only rule and amendments to PTE 84-24 and 2020-02.

Update: A Federal Court has granted a stay in the case brought by NAIFA, ACLI, and others.

The court in the FACC case ruled that plaintiffs are likely to succeed on the merits because the fiduciary-only rule conflicts with ERISA, and with the 5th Circuit’s decision in Chamber, by impermissibly expanding the definition of fiduciary and exceeding the DOL’s authority.

The court in the FACC case found the following:

• The fiduciary-only rule improperly treats one-time rollover recommendations as fiduciary relationships, by improperly redefining fiduciary relationships to include non-trust-and-confidence relationships.
• The fiduciary-only rule improperly (i) eliminates the requirements that fiduciary advice be given on a regular basis, pursuant to mutual agreement, and as primary basis for investment decisions, (ii) ignores the requirement that fiduciary advice be given for a fee, and (iii) ignores the distinction between the DOL’s authority under ERISA Titles I and II.
• The amendments to PTE 84-24 are arbitrary and capricious by imposing fiduciary duty requirements and liabilities on all agents and brokers who interact with retirement investors.
• The FACC plaintiffs demonstrated a substantial threat of irreparable harm if the fiduciary-only rule goes into effect, including compliance burdens and potential liability.

The court gave its stay nationwide effect, not limited to the parties in the FACC case, because the fiduciary-only rule affects all similarly situated financial professionals; because investment rules should be uniform; and because the rule impacts various parts of the financial services industry.

"NAIFA is very pleased that a federal court has halted enforcement of the Department of Labor's fiduciary-only rule," said NAIFA CEO Kevin Mayeux, CAE. "While we await a decision in the case NAIFA filed with NAIFA Chapters, ACLI, and other industry groups in opposition to the DOL rule, this is an important step forward towards protecting the businesses of NAIFA members and consumers who rely on them for financial products and services. The decision means that the DOL's rule will not go into effect September 24, and the courts will have time to fully consider the merits of our lawsuit. We are encouraged by this decision and are confident that we have put forward a strong argument to have the DOL's rule vacated in its entirety."

The NAIFA chapters that are parties to our lawsuit are NAIFA-Texas, NAIFA-Dallas, NAIFA-Fort Worth, and NAIFA-Pineywoods of East Texas. NAIFA will keep you posted on important developments in these cases.

Join your friends and colleagues at the Arizona Biltmore, September 19-21, for NAIFA's combined signature events, Apex and the National Leadership Conference. You can see who will be there on our Apex Who's Coming? page. Add your name to the list by registering today!

Members from Texas registered to attend include: 

Lena Allouche, NAIFA Houston President
Erni Davis, NAIFA Employee
Renae Davies, NAIFA-Texas Executive Director
Rick Demko, NAIFA-Texas President-Elect
Karen Easterling, NAIFA Austin Board Member
Susan Faykus, NAIFA Austin President
Keith Forster, San Antonio Member
Hollie Gandy Donohue, NAIFA Amarillo Area Leadership Team Member
Robin Johnston, Austin Member
Chuck Laubach, San Antonio Member
Douglas Massey, NAIFA National President-Elect
Shane Minks, NAIFA Houston Board Member
Michael Steadman, San Antonio Member
Jason Talley, NAIFA-Texas Industry Relations Task Force Chair & LILI Chair
James Thompson, NAIFA-Texas Board Member
Joey Ussery, Houston Member
John W Wheeler Jr., NAIFA-Texas Board Member

NAIFA's Apex and National Leadership Conference has what you need to take your business to the next level and boost your bottom line. 

• Breakout workshops on the hottest topics in insurance and financial services.
  • Mastering AI to bolster your insurance or financial business. 
  • Discovering knockout networking techniques.
  • Exploring the digitalization of life insurance.
  • Using CRMs, SOPs, social media, and other tools to build a high-performing agency.
  • Providing business owner clients with advanced-planning solutions.
• Keynote speakers to entertain, education, and inspire.
  • Morris Morrison
  • Marques Ogden
  • Amy Florian
  • David McKnight
  • Nathan Gonzales
• Ample networking with the best professionals in the industry at a world-class resort facility.

NAIFA-Texas is proud to announce that John M. Ruckel, LUTCF, a Financial Professional with MassMutual and owner of Ruckel Insurance and Financial Group in Nacogdoches, Texas, is the 2024 recipient of NAIFA’s Terry Headley Lifetime Defender Award. John will receive the award at the celebration on September 21. Learn more about this prestigious honor here: NAIFA-Texas Member John Ruckel to Receive NAIFA Terry Headley Award.

NAIFA's room block and conference rate at the Arizona Biltmore is reserved through August 12, so act now to avoid missing out.

NAIFA and NAIFA-Texas are proud to announce that John M. Ruckel, LUTCF, a Financial Professional with MassMutual and owner of Ruckel Insurance and Financial Group in Nacogdoches, Texas, is the 2024 recipient of NAIFA’s Terry Headley Lifetime Defender Award.

Ruckel, a loyal member since 1969, was NAIFA’s National President in 1999-2000. He had previously served on NAIFA’s National Board of Trustees and as NAIFA-Texas’s President in 1987-1988. He was also President of NAIFA-Pineywoods of East Texas and a member of the LIFE Foundation (Life Happens) Board of Directors.

Carson Porter is an experienced financial advisor providing specialized life insurance, annuities, and financial services across the United States. His journey from owning auto repair shops to excelling in the financial industry is marked by a passion for education, innovation, and business development. Carson founded a mastermind group dedicated to empowering insurance agents and advisors through unbiased education, collaboration, and accountability. With a decade of industry experience, he has built and sold multiple brokerage businesses and shares his insights at live events, including NAIFA's APEX conference.

IN THIS EPISODE…

As an advisor, do you feel like you're working tirelessly without seeing the growth you desire? While success is a continuous endeavor, you can elevate your business and personal satisfaction. How can embracing openness and learning from diverse thought leaders catalyze transformation?

Experienced financial services professional Carson Porter pivoted from the automotive industry to financial services, creating multiple income streams and a mastermind group to boost his and other agents’ success. He emphasizes the power of mastermind groups and other organizations to offer education and accountability. These valuable associations foster professional development and expand your network, allowing you to build trust with clients, cultivate industry relationships, and build a sustainable business and career path. 

In this episode of Advisor Today, Chris Gandy and Suzanne Carawan chat with Carson Porter, an experienced financial advisor, about mastering the craft of financial advising. Carson dispels common industry myths, encourages joining supportive organizations like NAIFA, and proposes innovative perspectives on building sustainable business models in the financial services industry.

RESOURCES MENTIONED IN THIS EPISODE:

• Chris Gandy on LinkedIn
• Suzanne Carawan on LinkedIn
• NAIFA
• Carson Porter on LinkedIn

Quotable Moments:

• "Give value without expectations; just give value and the money will come." 
• "If you really care about NAIFA, go find three agents today that aren't members of NAIFA and get them to join."
• "It's not lonely at the top; go find some folks and bring them here."
• "The only real million-dollar ideas are the ones you're making a million dollars on."
• "My first job was to be an expert marketer."

Action Steps:

1. Embrace continuous education: Engage in self-study and professional courses to deepen industry expertise. Carson Porter's educational journey underlines how continuous learning can redefine your career path.
2. Leverage technology: Integrate technology for better client management and compliance. Carson's experience shows that a tech-forward approach can enhance service quality and operational efficiency.
3. Build systems and processes: Systemize your advisory practice for sustainable growth. Carson's transition from auto repair to financial services teaches us the importance of creating value through systems.
4. Join supportive organizations: Carson's story emphasizes the importance of joining organizations like NAIFA for networking and education.
5. Examine your role: Assess whether entrepreneurship or intrapreneurship suits you best. Understanding your natural inclination can lead to a more fulfilling and successful career in financial services.

SPONSOR FOR THIS EPISODE...

This episode is brought to you by the National Association of Insurance and Financial Advisors, or NAIFA, the #1 association for producers in financial services.

At NAIFA, we enhance professional skills, promote ethical conduct, and advocate for legislative and regulatory environments.

By joining NAIFA, you gain access to a partnership that elevates your performance while providing greater purpose to your professional work. NAIFA members are happier, make more money, and stay in the business longer.

Get in touch with NAIFA and learn more about how to join NAIFA by visiting NAIFA.org.

NAIFA and NAIFA-Texas are proud to announce the rechartering of the former FSP Austin Chapter and the NAIFA-Austin Area Affiliate group as the new NAIFA-Austin Chapter. This development marks another significant step in the ongoing integration between NAIFA and FSP, aimed at strengthening the support and services offered to members across the nation. The merger of NAIFA and FSP continues to open new doors for enhancing member experiences and operational efficiencies.

In the complex world of financial planning, life insurance remains fundamental. However, the traditional view of life insurance as merely a safety net is evolving, especially when it comes to enhancing charitable giving strategies. We invite you to join our us on Tuesday, June 4, 2024, from 12:00 pm to 1:00 pm Eastern (11:00 am - 12:00 pm Central). This webinar is made available at no cost to both NAIFA members and non-members, thanks to the generous sponsorship by the American Cancer Society.

The webinar features:

• Life Insurance as an Asset: Often underutilized, life insurance can be a pivotal asset in charitable strategies, providing more than just death benefits.
• Life Insurance Valuation: Understanding the real worth of existing policies can open new avenues for financial planning, beyond the cash surrender value.
• Maximizing Life Settlement Value: Explore how life settlements can transform life insurance into a tool for immediate financial flexibility and charitable impact.
• Charitable Success Stories: Hear about real-world scenarios where life settlements have significantly contributed to the success of charitable endeavors.

After this webinar, you will be able to:

• Identify Potential: Recognize clients who could benefit from reevaluating their life insurance policies in the context of life settlements.
• Educate and Protect: Guide clients on getting their life insurance appraised for fair market value before making decisions about lapsing or surrendering their policies.
• Implement Best Practices: Integrate life settlement strategies to safeguard client interests and minimize potential liabilities or reputational risks.

This webinar is an exceptional opportunity for advisors to refine their expertise in leveraging life insurance for charitable giving and to ensure their clients can make informed decisions about their financial legacy.

Don't miss this chance to expand your professional knowledge and enhance your advisory capabilities in a meaningful way. 

Iris Nance is an experienced insurance agent who helps people optimize their coverage to meet their needs. With a celebrated career of over 26 years in the insurance industry, she worked as a bank examiner for over 10 years. Iris is deeply committed to education, mentorship, and community service, actively participating in programs for students and young entrepreneurs. A proud member of NAIFA, she has served on the board and has taken on leadership roles within the association. Recognized for her perseverance, advocacy for continuous learning, and strategies for balancing work and family life, Iris inspires many as a role model in the financial services industry.