Third Lawsuit Against Fiduciary Rule
Another group of litigants has weighed in on the fiduciary regulation, claiming that it will injure American workers, is “contrary to law, arbitrary and capricious, and violates the First Amendment.
This third lawsuit was brought by the American Council of Life Insurers, the National Association of Insurance and Financial Advisors (NAIFA) and six NAIFA chapters in Texas – and, like the first lawsuit brought against the Labor Department, was filed in the U.S. District Court for the Northern District of Texas.” Source: Napa-net.org
Counts raised in the most recent lawsuit:
- The fiduciary rule unlawfully and arbitrarily imposes fiduciary duties on commercial sales relationships and communications that are not fiduciary in nature.
- The Best Interest Contract Exemption (BICE) is arbitrary, contrary to law and arbitrary and capricious.
- The final fiduciary rule’s treatment of variable and fixed indexed annuities is arbitrary and capricious and contrary to law.
- The DOL failed to provide notice and an opportunity to comment on its arbitrary decision to move fixed indexed annuities from PTE 84-24 into the BICE.
- The DOL failed to provide notice and an opportunity to comment on its arbitrary decision to move the sale of group annuities from PTE 84-24 to the BICE.
- The fiduciary rule violates the First Amendment as applied to truthful, non-misleading commercial speech about retirement products by non-fiduciary salespersons.