Consumer Groups Gear Up to Fight Trump’s Retirement Advice Rule

Critics of the Labor Department’s new proposal to let financial firms receive “reasonable compensation” for some investments on behalf of retirees plan to argue in court or public policy circles that the agency is abdicating its duty under retirement law.

“We believe it is important to make a record that will help a future administration undo this damage,” Micah Hauptman, financial services counsel at the Consumer Federation of America, wrote in an email. He declined to discuss legal strategy beyond that but hinted at how his group will portray Labor Secretary Eugene Scalia in future debates about retirement policy.

“It’s ...