First lawsuit hits 401(k) fiduciary rule that Wall Street opposes

The U.S. Labor Department’s new fiduciary rule drew its first legal criticism Thursday, when the Federation of Americans for Consumer Choice and five insurance industry plaintiffs sued the regulator in Texas federal court over a new standard that aims to has to strengthen investor protection against conflicts of interest. in the field of pension advice.

They petitioned the U.S. District Court for the Eastern District of Texas for an injunction preventing the rule from taking effect. The DOL violated the Administrative Procedure Act by exceeding its authority and issuing a final rule and modifying exemptions that are “arbitrary and capricious,” the…