Regulatory & Compliance | 05.08.24
Insurer Group Files First Suit Over DOL's Advice Rule
by: Ben Miller
The U.S. Department of Labor’s (DOL) new fiduciary standard rule drew its first official legal challenge from the Federation of Americans for Consumer Choice and five insurance industry plaintiffs. The plaintiffs, seeking an injunction from a Texas federal court, say the final rule, released in April, creates burdensome compliance requirements and hurts their ability to make commissions. Plaintiffs said that the DOL violated the Administrative Procedure Act by exceeding its authority with a final rule and amended exemptions that are “arbitrary and capricious," echoing legal challenges to past fiduciary standard revisions.
Read the full article on Bloomberg Law