Fiduciary Rule Lawsuit? Bring It, DOL Chief Says

Su replied: “Yes. We are very confident that the rules not only are within our authority but that they take into account the existing case law about why the prior rules were struck down.”

Walberg then asked: “Why would these [rules] be any different? The sales rule and the fiduciary rule is in violation.”

Su said: “…They take into account what the court said about why the prior rules could not stand, and they’re different. The retirement security rule, for example, the definition of a fiduciary in the rule is different. What is covered under it is different.”

Said Walberg: “I don’t read it that way at all and I don’t know how the court will read it that way at all. I guess we wait and see … it’s concerning for the industries themselves when we’re going back and doing something … I mean, the uncertainty that goes on relative to these two rules is a slap-back, back and forth. But in these two cases, the court determined it.”

Industry officials say a lawsuit against the fiduciary rule is all but certain to happen soon.

Julie Su. Credit: U.S. Department of Labor