The U.S. Department of Labor is suspending enforcement of a provision of its fiduciary rule that allows clients to bring class action lawsuits against their advisors.

The DOL announced on Wednesday that it will suspend the section of the rule permitting clients to use litigation to enforce the best interest contract exemption and the principal transactions exemption.

Under the DOL rule, advisors using either exemption were not allowed to require clients to waive their right to sue via a mandatory arbitration clause. As long as the provision is suspended, advisors will still be able to require that any dispute with a client be settled through arbitration.

While advisors have complained that the DOL rule burdens them with the threat of multiple expensive lawsuits from aggrieved clients, consumer groups supported the provision as a protection from harm by unscrupulous advisors and unsuitable investment recommendations

The announcement, made in the DOL's Field Assistance Bulletin Number 2017-03, coincides with a 15-day comment period regarding the agency's plans to delay some elements of the fiduciary rule for 18 months.

According to the announcement, IRS officials will also suspend enforcement of the provision.

To read more stories , click here