The Department of Labor's new fiduciary rule should be upheld, government lawyers argued in a legal brief filed Monday in the 5th U.S. Circuit Court of Appeals in Dallas.
The case is one of five filed by opponents of the new rule on several grounds.
On Feb. 8, U.S. District Judge Barbara M.G. Lynn in Dallas dismissed a legal challenge filed by the U.S. Chamber of Commerce, Securities Industry and Financial Markets Association and other financial groups, who appealed the decision. DOL lawyers said in the brief that the judgment should be affirmed, except for a limitation on class actions and arbitration agreements.
In her opinion, Ms. Lynn said the rule does not exceed DOL's authority and the agency's cost-benefit analysis was reasonable, among other reasons. Oral arguments are scheduled for July 31.
Dennis Kelleher, president and CEO of non-profit advocacy group Better Markets, said in a statement that the rulemaking process "was one of the most exhaustive, open and all-inclusive rulemaking in history" and the Justice Department brief demonstrates that upholding it "will put tens of billions of dollars back in the pockets of tens of millions of Americans in or planning for retirement."