A coalition of business and financial services organizations filed a lawsuit Wednesday to stop the Department of Labor's fiduciary rule.
The legal challenge by the Securities Industry and Financial Markets Association, Insured Retirement Institute, U.S. Chamber of Commerce and other groups filed in U.S. District Court in Dallas argues that the rule and its related exemptions “overstep the department's authority, create unwarranted burdens and liabilities, undermine the interests of retirement savers and are contrary to law.”
In a joint statement, the CEOs of the five national association co-plaintiffs said the 1,023-page rule finalized in April will make saving for retirement more difficult and “specifically hinders many of our member firms' ability to continue providing the level of holistic financial advice and suitable investment options their clients are accustomed to.”
Secretary of Labor Thomas Perez, a defendant in the lawsuit, defended the rule, saying in a statement it “is built upon solid statutory and legal foundations, and we will defend it vigorously.” Mr. Perez called the plaintiffs “a small, vocal minority who support the status quo that enables them to put their own interests first.”
The Financial Planning Coalition, which represents certified financial planners and advisers who support the fiduciary rule, criticized the lawsuit in a statement, saying it was “extremely disappointed that these organizations have resorted to litigation to challenge a popular and common-sense rule that is long overdue.”