02.10.22

Fiduciary Rule Guidance Prompts Lawsuit Against Biden Agency

by: Austin R. Ramsey

Guidance the U.S. Department of Labor (DOL) issued last year clarifying its stance on investment advice under a 2020 fiduciary rule violates the Administrative Procedure Act, the American Securities Association said in a federal lawsuit filed Wednesday. The trade organization objects to the DOL’s frequently asked questions, issued in April 2021, because it said the guidance interpreted the Trump-era rule to mean that first-time advice to transfer retirement assets can constitute fiduciary advice, which the rule subjects to a strict standard of care. The suit marks the second time this month the DOL was sued over the fiduciary rule.

Read the full article on Bloomberg Law