DOL Puts Non-Arbitration Policy in Writing

September 9, 2017 by Hannah Glover

The Department of Labor last week issued a bulletin officially stating that it will not enforce the controversial anti-arbitration clause within the fiduciary rule.

That clause has been among the most contentious elements of the rule, and in some ways served as the teeth of its overall enforcement.

By providing a private right of action — essentially the right of clients to hash out disputes over retirement accounts with their brokers in the courts, rather than rely on the Finraarbitration now commonly required by client agreements — the rule threatened to open a new channel for class action lawyers to pursue.

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Originally Posted at Life Annuity Specialist on September 8, 2017 by Hannah Glover.