“Professional groups representing the brokerage and insurance industries last week finally broke their silence on the Labor Department’s regulation to raise investment advice standards for retirement accounts by filing a lawsuit that could put the rule in limbo.
“We will ask the court to proceed quickly in the case given how burdensome and disruptive the rule is and given the deadlines next year, which require preparation in the near future,” said Eugene Scalia, a partner at Gibson Dunn & Crutcher and the lead attorney in the case. The lawsuit aims to vacate the rule and prevent the DOL from implementing and enforcing it.”
“What seemed like a lull in activity really wasn’t,” said Steve Hall, legal director and securities specialist at Better Markets, an investor watchdog that supports the DOL rule. “What they were doing was furiously preparing the lawsuit.”
To read the full Investment News article by Mark Shoeff Jr. click here.