The U.S. Chamber of Commerce, along with several financial industry groups, filed a court challenge to the fiduciary rule finalized in April by the Department of Labor.
Joining the Chamber of Commerce in the court action were the Financial Services Institute, the Financial Services Roundtable, the Insured Retirement Institute and the Securities Industry and Financial Markets Association. The lawsuit was filed on Thursday in Dallas.
Despite intense opposition and heavy lobbying against the proposal by the brokerage and asset management industries, the new rule is the first major change to Employee Retirement Income Security Act law in four decades and will take full effect at the beginning of 2018.
The suit, meanwhile, is focused on the provision that leaves financial advisors giving retirement advice vulnerable to class-action lawsuits if investors think their advisor has not acted in their best interests.
The groups which filed suit also believe the Labor Department crafted a complex rule that will make financial advice very costly for smaller investors.