Jim Allen, the head of capital markets policy for the Americas at the CFA Institute, expects a court challenge to the Department of Labor’s fiduciary rule when it is finalized.
In a blog last week, Allen said he expects a suit to be filed possibly charging the rule to be illegal because of its flawed cost analysis.
He noted a similar tack worked to stop the Labor Department’s fiduciary proposal in 2011.
Allen said the final rule is likely to be fraught with problems because it was written in a hurry. He contended the same problem has bedeviled the Dodd-Frank Act.
That five-year-old legislation, Allen argues, has not achieved its goals and has raised costs for investors in a low-return environment.