401(k) Investment Advice Rule Opponents Ring Lawsuit Alarm Bells

Critics of the Biden administration’s proposed retirement plan fiduciary advice rule are warning the US Labor Department that the agency will likely be taken to court for proposing a regulation they say would harm investors and curtail sales.

Regulators appear to still be poring over the more than 19,000 comments they’ve received on the proposed Retirement Security rules package (88 Fed. Reg. 75890–76045). The proposal would cast strict fiduciary standards of conduct over a wider array of financial professionals, threatening the commissions they earn on investment sales.

DOL’s Employee Benefits Security Administration has said it’s protecting retirement investors ...