Fiduciary Rule Guidance Prompts Lawsuit Against Biden Agency (1)

Guidance the U.S. Department of Labor issued last year clarifying its stance on investment advice under a 2020 fiduciary rule violates the Administrative Procedure Act, a trade organization representing financial services firms said in a federal lawsuit filed Wednesday.

The American Securities Association objects to the Biden Labor Department’s frequently asked questions, issued in April 2021, because it said the guidance interpreted the Trump-era rule to mean that first-time advice to transfer retirement assets can constitute fiduciary advice, which the rule subjects to a strict standard of care.

The group filed suit in the U.S. District Court for the Middle ...