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Lawsuit challenges legality of Labor Dept. fiduciary rule

Joe Mont | June 2, 2016

In a widely anticipated development, a coalition of business groups is suing to strike down the Department of Labor’s recent “fiduciary duty” rule, calling it “over-reaching” with an end result that “will restrict hardworking Americans' access to retirement advice and planning services."

In April, the Department of Labor finalized a new rule that creates a fiduciary duty for brokers and registered investment advisers who offer retirement advice. The rule provides exemptions that, if applied for and granted, would allow these advisers to maintain fee-based arrangements.

Plaintiffs include the U.S. Chamber of Commerce, the Financial Services Institute, the Financial Services Roundtable, the Securities Industry and the Financial Markets Association. With the likely attempt to bring the case to a favorable court, several Texas-based organizations are included in the suit, among them the Texas...

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