Insurer Group Files First Suit Over Biden 401(k) Advice Rule (1)

The US Labor Department’s new fiduciary rule drew its first legal challenge on Thursday, as a trade association and five insurance industry plaintiffs asked a Texas federal court to block the new standard aimed at strengthening protections for retirement investors.

The Federation of Americans for Consumer Choice and the insurance groups say the final rule released April 23 would create heavy compliance burdens and hurt their ability to make commissions. Under the rule, the strictest standards of fiduciary conduct would be expanded to cover many rollovers out of 401(k)s and 403(b)s into annuities and individual retirement accounts.

Plaintiffs said in ...