We get their blasts of arctic air during the winter, but a proposal by the Canadian government that would prohibit banks from selling life annuities is not anticipated to sweep into the U.S.
Back in December, Canada’s Ministry of Finance proposed a ban on banks selling what it termed life annuity or “annuity-like” products. Since the U.S. and Canada share a border, would such an action be likely here? Not very, say industry insiders, due to long-standing U.S. regulations that allow banks to sell annuities and other life insurance products.
Having banks sell insurance products gives consumers more choice under one roof, which is especially important at a time when traditional retirement programs, like Social Security, are under siege and consumers are looking for secure retirement products, argue McKechnie and other annuity advocates.
Kim O’Brien, president and CEO of the National Association for Fixed Annuities, doesn’t see any change to the current law. In an email statement, she wrote: