Financial Advisor: Insurance Agents Sue to Overturn New York’s Best-Interest Reg

November 27, 2018

The National Association of Insurance and Financial Advisors for New York State (NAIFA-NYS) filed a lawsuit contesting the legality of the New York Department of Financial Services’ (DFS) “best interest” regulation. NAIFA-NYS contends that requiring agents and brokers to ensure every insurance or annuity transaction complies with the “best interest” regulation contradicts NY law.

O’Melveny partner Tancred Schiavoni, who represents NAIFA-NYS, said, “We’re challenging the New York regulation because it creates a clear legal conflict with New York statute, and that puts agents in an endless position of legal peril.”

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