Iowa Attorney General Brenna Bird is leading a group of 20 states in challenging the Biden administration’s “Fiduciary Rule,” which imposes new federal requirements on financial advisors who provide retirement advice. The coalition argues that the rule will increase costs for consumers, limit choices for those saving for retirement, and hinder innovation within the financial services sector.
The states contend that existing state-level regulations are sufficient to protect retirees. They criticize the federal rule as a uniform approach that does not consider local needs and claim it removes authority from state agencies responsible for overseeing financial advisors.
“This regulation is nothing more than Washington bureaucrats meddling in the financial decisions of hardworking Americans, driving up costs, and limiting access to trusted advisors,” said Attorney General Bird. “Iowa has a strong tradition of protecting customers through state-level oversight. We urge the court to strike down Biden’s mandate so Iowans can continue building their retirements without unnecessary red tape.”
Iowa Insurance Commissioner Doug Ommen added: “We are hopeful the court recognizes that 49 states have already adopted Annuity Best Interest Rules, which were designed to protect consumers from unprofessional predatory practices that are not in the interest of consumers. The Department of Labor’s effort to dramatically expand regulatory authority is not only redundant but also creates conflicts with existing state regulations that already offer sufficient consumer protection.”
The legal brief opposing the fiduciary rule includes participation from Alabama, Alaska, Arkansas, Florida, Georgia, Kansas, Idaho, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas and West Virginia.
