NEW YORK The U.S. Chamber of Commerce appealed a
Texas federal judge’s ruling upholding a Labor Department’s
regulation aimed at putting retirement savers’ interest first on
Friday, the latest salvo in the securities industry’s fight
against the regulation.
Earlier this month, Chief Judge Barbara Lynn of the Northern
District of Texas ruled against the Chamber of Commerce and its
many co-plaintiffs, dismissing its arguments that the Labor
Department had exceeded its legal authority creating the rule,
and that it had failed to conduct an adequate cost-benefit
analysis to help justify the regulation.
The Labor Department’s “fiduciary” rule requires brokers to
put their clients’ best interests first when advising them about
individual retirement accounts or 401(k) retirement plans.
Calling the rule costly and overly burdensome, trade groups
for the securities and insurance industries filed lawsuits
aiming to block to rule in three federal courts last year.
Two judges have ruled to uphold the rule, and a third judge
rejected an effort to suspend the rule’s implementation.
The group’s appeal will be considered by the U.S. Court of
Appeals for the Fifth Circuit.
The U.S. Chamber of Commerce said in a statement that it
stood by its assertion that the Department of Labor exceeded its
authority. It said the rule “creates unwarranted litigation risk
for financial advisors, who will face the threat of meritless
class action lawsuits challenging their every move.”
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