DOL’s Fiduciary Rule Challenged On Free Speech Grounds

The recent Department of Labor rule that requires brokers who manage retirement accounts to adhere to a stricter fiduciary duty rule has been challenged in federal court in Dallas, on the grounds that it curtails broker free speech rights. The DOL maintains the rule will save retirees billions over the next ten years because it will prevent the pushing of financial products with excessive fees. The industry maintains the rule inhibits commercially protected free speech and will thwart legitimate sales pitches. The lead attorney for the plaintiffs is an experienced counsel for industry and trade groups, and a familiar name: Eugene Scalia, son of the late Supreme Court justice Antonin Scalia.