Just when it looked like the brokerage industry had taken a huge step forward in creating a unified standard for financial advisor conduct come reports that various groups are planning on suing to strike down the DOL’s fiduciary duty rule.
According to reports, the U.S. Chamber of Commerce, SIFMA (a Bar association of attorneys representing the brokerage industry, FSI, IRI and the Financial Services Roundtable could file a suit as early as Thursday.
These same reports indicate that the suit will apparently focus on the provision that leaves advisers giving retirement advice vulnerable to class-action lawsuits if investors think their adviser has not acted in their best interests. Regardless, any further stripping away at the teeth of the rule created to better protect investors is a disservice to investors.
Investors deserve to know that their advisor has a fiduciary duty to them to look out for the best interests and that they have the right to sue (in any capacity) if that duty is violated. Given the significance of the rule and wholesale changes that the rule requires brokerage firms to implement, it should though come as no surprise that these entities would go to such extraordinary lengths.
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Tags: DOL Fiduciary duty rule challenged, DOL Fiduciary duty rule explained, DOL fiduciary duty rule lawsuit, DOL fiduciary duty rule SIFMA Last modified: June 2, 2016