FSI and SIFMA ask the courtroom to vacate and “put aside the 2024 rule and declare it to be in extra of the DOL’s statutory authority, arbitrary and capricious, and in any other case not in accordance with regulation.”
If the 2024 rule goes into impact, “suggestions by a broker-dealer or different monetary skilled concerning property in a retirement account, together with gross sales suggestions, will as soon as once more be thought-about ‘fiduciary’ recommendation even within the absence of an ongoing, mutually acknowledged recommendation relationship,” FSI and SIFMA state. “As soon as once more, transaction-based compensation in reference to such transactions might be presumptively illegal.”
With the Securities and Trade Fee’s Regulation Greatest Curiosity, ”the wants case for the Division’s illegal regulation of broker-dealers vanished,” SIFMA and FSI mentioned.
In Reg BI, furthermore, “the SEC rejected the very factor that the Division — which is an employment regulator, not a broker-dealer regulator — boasts of getting imposed right here: promulgation of ‘a uniform normal of conduct [for] all monetary professionals no matter how they interact with their retail prospects’ as said within the grievance,” the teams mentioned in a press release.