Putnam CEO calls for new regulator to oversee lifetime-income products

Putnam CEO calls for new regulator to oversee lifetime-income products
Putnam Investments ceo Bob Reynolds today called for the establishment of a regulatory body to approve lifetime-income products.
MAR 13, 2012
Bob Reynolds, chief executive of Putnam Investments, today called for the establishment of a regulatory body to approve lifetime-income products. The lifetime-income security agency would be empowered to vet the full range of income solutions and administer an industry-funded insurance pool, Mr. Reynolds said. Insurers with top-tier credit scores and those who offer conservative annuity or drawdown plans would pay lower fees into the pool than those with lower scores or aggressive plans, he said. Mr. Reynolds also called for a national insurance charter. “We have had conversations with many insurers and legislators in Washington; there's strong interest for this [agency], and I think it's something viable,” Mr. Reynolds said at the Insured Retirement Institute's annual conference in Boston this morning. “It will take a cross section of insurers and people in the industry to really push this forward.” Such a regulatory agency would have the same impact on confidence as the Federal Deposit Insurance Corp. had following the banking crisis during the Great Depression. “At a single stroke, this new national insurance regulator would give plan sponsors and advisers confidence that nationally approved lifetime-income solutions would keep their promises,” he said.

Latest News

Forbes advisor list update: Morgan Stanley drops it, owner says changes are coming
Forbes advisor list update: Morgan Stanley drops it, owner says changes are coming

Meanwhile, the founder of advisor list gives reasons for secret $6 million payment to editor.

U.S. Bank names chief private banking officer for wealth unit
U.S. Bank names chief private banking officer for wealth unit

Internal C-level promotion comes as US Bank builds out private banking, athlete-focused advice and alternatives infrastructure.

Why planning is the only strategy that holds in every market
Why planning is the only strategy that holds in every market

A structured financial plan doesn't just prepare clients for the future, it transforms how they respond to the present.

Gemini, Apex deal reflects prediction markets move towards mainstream retail investing
Gemini, Apex deal reflects prediction markets move towards mainstream retail investing

Regulated prediction markets for retail brokerage clients is the latest sign that prediction markets are entering the mainstream investing toolkit.

AmeriFlex Group launches AI program to identify advisors nearing succession
AmeriFlex Group launches AI program to identify advisors nearing succession

Proprietary Scout tool, built with Anthropic's Claude, profiles hundreds of firms in minutes to help the hybrid RIA scale its succession business.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income