Erin Sweeney commented on the recent lawsuit brought by associations representing the brokerage and insurance industries against the U.S. Department of Labor (DOL) in response to the agency's recently released fiduciary rule. The case, which will take place in the northern district of Texas, may find the court sympathetic to the industry. "The court has been hostile to the Department of Labor," Sweeney said. "If you're a plaintiff, it's the right court to bring the complaint in."
In response to Labor Secretary Thomas Perez's defense of the regulation, stating that it was built upon a solid legal foundation, Sweeney said the DOL may find itself in the same situation that the Department of Health and Human Services was in when it had to respond to the many claims against the health care reform law. "It requires the DOL to fight a multifront battle," she said. Sweeney cautioned financial firms against waiting for the courts to act before addressing compliance, because next April's implementation date is quickly approaching. Brokers have the most changes to make in complying with the rule and are "going to have to move full-speed ahead," she said.