The National Association of Insurance and Financial Advisors issued the following news release:

Today, the president of the National Association of Insurance and Financial Advisors (NAIFA), Cliff F. Wilson, CLU, ChFC, LUTCF, CLF, will testify before the House Committee on Financial Services. The hearing, "Regulatory Restructuring: Enhancing Consumer Financial Products Regulation," will focus on ways in which financial product regulation can be enhanced to better protect consumers.

"Insurance products are heavily regulated at the state level and should not be placed under the authority of a federal Consumer Products Safety Commission," warns Wilson. "We understand the desire for improved regulatory oversight of products and services that have, to date, been un-regulated or under-regulated. The fact is that many financial products are not subject to the same level of oversight as insurance products."

The Obama Administration's white paper, "Financial Regulatory Reform: A New Foundation," calls for the creation of a new independent regulator to oversee the soundness of financial products to ensure consumer protection. Among the questions the Committee will explore today is whether insurance products should fall under the jurisdiction of such a regulator.

Wilson continues, "NAIFA members share the views of the Administration and the Committee that protecting consumers is the ultimate purpose of regulation. We believe that robust consumer protection is necessary to ensure public trust in financial products and services and the financial system as a whole. We see the impact of strong consumer protection laws and rules every day. Despite the burdens on us to carry out current rules, we believe in the benefits they bring to our customers."


According to NAIFA's position, insurance products should not fall under the proposed Consumer Product Safety Commission for the following reasons:

1. Insurance products are subject to comprehensive state regulatory oversight. Federal intervention is unnecessary and could lead to regulatory confusion.

2. Separation of insurance product regulation from insurance solvency regulation is dangerous.

3. Federal financial product oversight should be addressed only as part of a comprehensive review of insurance regulation.

*View a copy of NAIFA's testimony at www.house.gov/apps/list/hearing/financialsvcs_dem/wilson_-_naifa.pdf

* View NAIFA's position on all issues related to insurance regulatory reform www.naifa.org/advocacy/irr/index.cfm.

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TNS MJ88-JF78-090626-2325381 StaffFurigay