August 6, 2010
While as a NAIFA member I believe that I am already acting in the "best interest" of my clients, the Act does not define what the rules are for compliance with a legal "best interest" standard - thus subjecting me as a registered representatives to the potential of never ending lawsuits. For example, is "best" the cheapest recommended product? The "best" premium relative to the benefit of the product? The product with the "best" historic underwriting and service standards? Is it the one from the carrier with the "best" rating? The fiduciary standard in essence adds a vague legal liability standard that can look back (sometimes after many years) and will be enforced after the fact by you the SEC or trial lawyers who will then have perfect vision in hindsight.