Securities Groups Join Insurers’ Court Challenge to 401(k) Rule

Two securities industry groups have jumped into a lawsuit filed by a coalition of insurance trade associations in Texas federal court to block the Labor Department’s rule expanding the strictest standards of care to more retirement advice.

Sifma, a trade group for broker-dealers and asset managers, along with the Financial Services Institute, which represents independent financial advisers, filed a motion to intervene Friday, agreeing with American Council of Life Insurers that the fiduciary rule violates the Administrative Procedure Act.

The rule promulgated by the DOL’s Employee Benefits Security Administration would extend fiduciary duties to savers’ rollovers out of employer-sponsored 401(k) ...