Chamber of Commerce Slams 401(k) Advice Rule ‘Legal Gymnastics’

Texas federal courts should not allow the Labor Department’s new fiduciary rule to take effect later this year as it conflicts with retirement benefits law and litigation precedent, the US Chamber of Commerce said in a pair of briefs supporting challenges to the regulation.

The new rule replicates many of the flaws that the US Court of Appeals for the Fifth Circuit identified when vacating an Obama-era fiduciary standard, the group said. The briefs support two sets of insurance industry groups that sued the agency to pause the new rule before it goes into effect starting in September, providing an ...