A trade group of insurance agents and agencies has filed a lawsuit against the Department of Labor (DOL), to challenge the federal agency’s interpretation of who is required to act as fiduciaries for customers.
The lawsuit was filed by the Federation of Americans for Consumer Choice (FACC), together with several independent insurance agencies and agents.
The lawsuit looks to overturn a federal rule that was only recently enforced by the DOL, which requires every financial professional (such as an insurance agent) who invests client money that is rolled over from a retirement plan or IRA to act as a fiduciary. It also mandates that financial professionals document and disclose why the rollover is in the client’s best interest.
