The National Association of Insurance and Financial Advisors (NAIFA) encourages all of the 45,000 agents who belong to its state and local associations to fully disclose all commission amounts if a consumer asks, for both insurance and securities products, whatever state they are in. Previously, NAIFA had not taken an official position on this matter, which is now required in the state of New York.
NAIFA said in a recent reference to a New York Times article on the subject, “During the New York Regulation 194 deliberations and in discussions about Dodd-Frank/fiduciary duty/disclosure, it became clear that NAIFA did not have a positive response to the question:“What if the customer wants to know how much you (producer/advisor) make on a sale? Now NAIFA does have a positive/pro-consumer response and this was a major reason we changed our policy. The producer/advisor has nothing to hide and the customer who asks/wants to know about compensation will receive that information.”