DOL’s Fiduciary Rule Slammed with 1st Lawsuit

The Department of Labor is facing its first court challenge to the final Retirement Security Rule, or fiduciary rule, brought by the lobbying group The Federation of Americans for Consumer Choice (FACC).

The rule, released on April 25, broadens the definition of fiduciary to include financial professionals who advise on rollovers to IRAs and annuity sales, among other one-time recommendations, modifies certain prohibited transaction exclusions, and increases disclosure requirements.

The FACC and other plaintiffs, including insurance-related businesses ProVision Brokerage and TX Titan Group, argue in a lawsuit filed last Thursday that the DOL “has exceeded its authority and acted arbitrarily and capriciously.”