ASA Files Lawsuit to Protect America’s Retirement Savers
TAMPA – The American Securities Association (ASA) today filed a lawsuit in the Middle District of Florida challenging the U.S. Department of Labor’s (DOL) attempt to change existing retirement rules without going through a notice-and-comment rulemaking as it’s required to do under the Administrative Procedure Act (APA).
“This lawsuit is necessary to protect America’s retirement savers from an ever-expanding administrative state that continues to push policies the American people, Congress, and the courts routinely reject. The DOL's failure to seek public comment before changing rules about retirement advice is a violation of the Administrative Procedure Act,” said ASA CEO Chris Iacovella. “If this change takes effect, it could harm the retirement savings of millions of working-class families and exacerbate income inequality across our country. We hope the court will assert itself to protect America’s retirement savers from this administrative overreach."
Last year, the Department issued a series of “frequently asked questions,” or FAQs, claiming to provide “guidance” on its current retirement rules. In reality, the Department used the FAQs to impose new obligations on retirement accounts that did not previously exist. Agencies prefer to issue guidance documents, including FAQs, because unlike the deliberate notice-and-comment process, these documents can be thrown online in a matter of minutes and immediately change behavior. This is an example of bureaucracy at its worst, and thankfully, it’s unlawful under the APA. The public has a right to comment on any policy regulators seek to implement before that policy can take effect. The APA affords these due process protections to ensure agency actions receive proper scrutiny.
To read a copy of ASA’s lawsuit, click here. To read a copy of ASA’s September 2021 letter to the DOL expressing its concerns, click here.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.