Dallas court schedules hearing for lawsuits against DOL fiduciary rule

A Dallas federal court has scheduled a November hearing for three lawsuits that have been filed to stop a Labor Department investment-advice regulation. In a July 7 order, Chief Judge Barbara M.G. Lynn set a Nov. 17 date for a hearing on motions for summary judgment. Earlier, Ms. Lynn consolidated the three suits that were filed in the U.S. District Court for the Northern District of Texas. One of the complaints involves nine co-plaintiffs, including the Securities Industry and Financial Markets Association, the Financial Services Institute and the U.S. Chamber of Commerce. Another one was filed by the American Council of Life Insurers and the National Association of Insurance and Financial Advisors. A third was filed by the Indexed Annuity Leadership Council. The parties will follow a litigation schedule that requires the filing of briefs at various dates in July, August, September and October. Two other suits also are in the court system. One of them, filed in Washington, D.C., federal court by the National Association of Fixed Annuities, will have a summary judgment hearing on Aug. 25. The other suit, filed in Kansas district court by the Market Synergy Group, will have a summary judgment hearing on Aug. 24. (More: Everything you need to know about the DOL fiduciary rule as it develops) Each of the suits aims to kill the DOL rule, which was finalized in April and requires financial advisers to act in the best interests of their clients in retirement accounts. The plaintiffs argue the rule would significantly raise regulatory costs and legal risks for financial advisers and make advice too expensive for investors with modest assets. The Obama administration asserts that the rule will protect workers and retirees from conflicted advice that results in the sale of high-fee investments that erode savings. Labor Secretary Thomas Perez expressed confidence on June 22 that the rule would survive the legal challenges.