08.13.24

Have Insurance Lobbyists Derailed Biden's Fiduciary Rule Again?

by: Tracey Longo

Two separate federal courts in July blocked the U.S. Department of Labor (DOL) from implementing a new fiduciary rule, the result of lawsuits brought by industry groups led by the American Council of Life Insurance and the Federation of Americans for Consumer Choice, respectively. The rule was set to go into effect on September 23. DOL spokesman Grant Vaughn says the agency “continues to believe that the rule is essential to ensuring that retirement investors are protected. When investors get advice from a trusted financial professional, they expect the advice to be in the customer’s best interest, not the professional’s. The rule makes that a reality." Opponents within the insurance industry counter that the rule would force the industry to eliminate any advice they provide on annuities and insurance products.

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