401(k) Adviser Rule at Risk: Looming Legal Threats Explained

The Labor Department’s new standard extending fiduciary duties to more retirement advice professionals appears set to encounter tough opponents from Wall Street and Capitol Hill now that it has been finalized.

Legal threats and legislative actions could jeopardize the investment advice rule’s chances of reaching its initial effective date of Sept. 23. Life insurers that sell annuities have vocally opposed the rule, which they say would decimate the market for those products typically marketed as rollover options for retirement savers. Professional groups like Finseca, which counts giants like State Farm and Principal Financial Group among its members, are gearing ...