The Federation of Americans for Consumer Choice (FACC) has filed a second lawsuit against the Department of Labor (DOL), in an effort to stop the new fiduciary rule.
The FACC, along with other independent insurance agents, filed for a preliminary injunction in the U.S. District Court for the Eastern District of Texas. The suit argues that if applied, the new fiduciary rule would cause “dire consequences for tens of thousands of independent insurance agents and their clientele if not stopped.” Therefore, its implementation should be delayed until the first lawsuit is settled, plaintiffs maintained.
The insurance advocacy group has sued the Department of Labor (DOL) in May, where they accused the DOL of violating the Fifth Circuit Court of Appeal’s previous rule that vacated the 2016 fiduciary rule. FACC’s lawsuit claims that the DOL is again attempting to regulate industries outside of retirement plan advisors through the new rule and the PTE 84-24 amendment.
