Finseca Joins Insurance Associations to File Legal Challenge to U.S. Department of Labor’s Fiduciary-Only Regulation

Today, Finseca joined The American Council of Life Insurers (ACLI), National Association of Insurance and Financial Advisors (NAIFA), NAIFA-Texas, NAIFA-Dallas, NAIFA-Fort Worth, NAIFA-POET, Insured Retirement Institute (IRI), and National Association for Fixed Annuities (NAFA) to file a legal challenge to the Labor Department’s fiduciary-only regulation.
 
“The legal action we are taking today comes after careful deliberation on what is in the best interest of the retirement savers we serve.

Our filing makes a convincing case that the DOL’s fiduciary-only regulation suffers from the same legal defects as the DOL’s failed 2016 rule. It exceeds the DOL’s authority under federal law, is arbitrary and capricious, and is unconstitutional. Moreover, it ignores recently enhanced federal and state standards for financial professionals who work with retirement savers.

However, the DOL’s biggest failing is its inability to learn from past mistakes. Despite sound evidence of its harmful effects, strong objections from Members of Congress and opposition voiced in thousands of consumer comments, the DOL chose to advance a repackaged version of its ill-advised 2016 regulation. Before it was struck down by the Fifth Circuit, the 2016 regulation resulted in more than 10 million American workers’ accounts with $900 billion in savings losing access to professional financial guidance."

Continue reading the full joint release here or you can read the full filing here.