Insurance groups opposed to DOL fiduciary rule step up campaign spending

Two insurance industry trade associations that oppose the Labor Departments' recently finalized investment advice rule have stepped up their political spending. The American Council of Life Insurers has donated $734,000 to members of Congress to help fund their campaigns as of March 31, according to records filed with the Federal Election Commission. That amount exceeds what the group spent during the entire 2014 cycle: $663,600. The Insured Retirement Institute, which represents the annuity and retirement income sector, has spent $131,700 so far in the 2016 cycle. It's on pace to eclipse its spending in the 2014 cycle, at $139,300. The 2016 cycle began on Jan. 1, 2015, and runs through Dec. 31, 2016. The 2014 cycle began on Jan. 1, 2013, and continued until Dec. 31, 2014. Concerns about the DOL regulation, which was released on April 6, have contributed to IRI's emphasis on congressional campaigns. “Obviously, the DOL fiduciary rule represents a significant change for the industry, and we dedicated more resources as we worked to communicate our concerns to policymakers about the proposed rule's impact on consumers,” IRI spokesman Andrew Simonelli wrote in an email. (More: Coverage of the DOL rule from every angle) He added that the group also has done more work with legislators on a range of retirement security policies, which also has contributed to IRI's greater campaign presence. The ACLI is mulling whether to file a suit against the DOL rule. It also has been a leading proponent of legislation that would halt the measure and replace it with a fiduciary standard written by lawmakers. But ACLI spokesman Jack Dolan said there's not necessarily a direct relationship between the group's increased campaign spending and its opposition to the DOL rule. He said former Idaho governor and current ACLI president and chief executive, Dirk Kempthorne, has made the group's political action committee a priority. “Governor Kempthorne and the member companies promote the PAC regularly,” Mr. Dolan wrote in an email. Groups that represent the insurance and brokerage industries generally spend much higher amounts on political campaigns than investment adviser organizations. The National Association of Insurance and Financial Advisors has donated $1.4 million during the 2016 cycle. The Investment Company Institute has doled out $1.6 million, while the Securities Industry and Financial Markets Association has spent $529,250. The Financial Services Institute has donated $161,500 to campaigns. On the adviser side, the Investment Adviser Association is on pace to increase its campaign outlays, having spent $30,000 so far in the 2016 cycle, compared to $34,000 for all of 2014. The Financial Planning Association has spent $42,000. For lobbying Congress, spending follows the same trend. During the first quarter of the year, groups representing the insurance and brokerage industries have dominated, according to filings with the U.S. House Clerk's office. Those organization include SIFMA ($1.67 million), ICI ($1.23 million), ACLI ($1.10 million), NAIFA ($566,425), FSI ($180,000) and IRI ($90,000). The lobbying outlays are much lower on the investment adviser side: IAA ($40,000), FPA ($15,000) and the Financial Planning Coalition ($10,000). The Financial Industry Regulatory Authority Inc., the industry-funded broker-dealer regulatory, spent $190,000 on lobbying in the first quarter of 2016, down slightly from $210,000 in the same period last year. A couple trade groups that spent less on lobbying this year than at the same point last year — NAIFA and FSI — attributed the decrease to administrative changes rather than an adjustment in their policy agenda. “With the [DOL] rule imminent, our advocacy was conducted more with internal staff, rather than outside consultants,” FSI spokesman Chris Paulitz said in a statement. The NAIFA made personnel changes in its lobbying organization that contributed to lower spending.