The Department of Labor's (DOL) finalized fiduciary rule "exceeds the Department's statutory authority and is arbitrary, capricious, and contrary to law," according to a lawsuit filed against the DOL and Labor Secretary Thomas Perez in U.S. District Court for the northern district of Texas.

Named plaintiffs in the suit are the U.S. Chamber of Commerce, Financial Services Institute, Financial Services Roundtable, Insured Retirement Institute, the Securities Industry and Financial Markets Association, and several Texas-based business interest groups and affiliates of the Chamber of Commerce.

In vastly expanding the definition of fiduciary under the Employee Retirement Income Security act to all advisors, broker-dealers and insurance companies servicing IRAs and tens of thousands of 401(k) plans with less than $50 million in assets, the DOL is effectively rejecting long-standing securities laws, and encroaching on responsibilities Congress has mandated to the Securities and Exchange Commission, plaintiffs claim.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.