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WASHINGTON, DC – The American Securities Association (ASA) today submitted a comment letter to the U.S. Department of Labor (DOL) on the Retirement Security Rule amending the definition of an investment advice fiduciary under the Employee Retirement Income Security Act.
“The DOL is trying to put lipstick on the same pig the courts have repeatedly said is illegal. For the fourth time in ten years, the DOL has chosen to waste taxpayer funds pursuing an unlawful policy. The unelected bureaucrats at DOL cannot change ERISA’s definition of fiduciary status in this way, only Congress can do that,” said ASA President & CEO Chris Iacovella. “The Department’s actions also raise other significant legal questions, including the Agency’s violation of the Administrative Procedure Act and the Constitution’s Appointments Clause. We remind those in the DOL that this is still a nation of laws made by the People’s representatives through their consent, and if the DOL continues to disregard those laws or the requirements in the Constitution, then the People will have no choice but to seek legal recourse to stop this illegal policy again. The DOL must leave its longstanding definition of investment advice fiduciary in place and withdraw this Proposal.”
Read the full comment letter here.
In February 2022, ASA sued the U.S. Department of Labor in federal court in the Middle District of Florida for violating the Administrative Procedure Act (APA).
In May 2023, the U.S. Department of Justice voluntarily dismissed its appeal after the DOL dropped its appeal following the Middle District Court of Florida striking down its proposal to change existing rules about retirement advice without a formal rulemaking.
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About the American Securities Association
American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.