New DOL Fiduciary Rule Hit With First Lawsuit
At the same time, the suit continues, “the DOL amended several related ‘prohibited transaction exemptions’ … including an amendment to PTE 84-24, which directly relates to the compensation that insurance agents may receive if they are deemed to be fiduciaries under the new 2024 Fiduciary Rule.”
Labor’s 2024 fiduciary rule and PTE “amendments are just the latest salvos by the DOL in its almost 15-year quest to re-define what it means to be an ERISA fiduciary in contravention of the will of Congress,” the suit states.
“Moreover, it blatantly defies the prior ruling of the United States Court of Appeals for the Fifth Circuit … striking down a rule package that was effectively indistinguishable from the 2024 Fiduciary Rule,” it explains.
FACC said in a statement Thursday that it was “disappointed that the DOL has chosen to go down this same tired path with yet another proposal that blatantly violates the 2018 ruling by the Fifth Circuit and arrogantly ignores limitations of its authority under ERISA.”
The DOL’s new rules, finalized on April 23, “are yet another assault on the financial services industry — especially insurance agents — that only serve to create more cost and confusion for American consumers,” FACC said.
The group said that it “strongly supports state insurance regulation, including the latest updates to the NAIC Model Regulation establishing best interest sales conduct requirements that provide consumer protection while preserving consumer choice.”