A group of U.S. industry organizations is suing the U.S. Department of Labor in an effort to block its rule imposing a fiduciary duty on retirement advice.

The complaint filed by the group of nine industry lobbyists in a Texas district court argues, among other things, that the rule infringes on the jurisdiction of securities regulators and will limit consumer choice.

“The [U.S. Securities and Exchange Commission (SEC)] has more than 80 years’ experience regulating financial markets and services, including the provision of investment advice, and has been specifically charged byCongress with studying the propriety of adopting a uniform fiduciary standard,” the lawsuit argues. “The Department of Labor’s authority, by contrast, is more narrowly prescribed and is generally restricted to employee benefit plans. It possesses neither the expertise nor the authority to regulate financialservices in a manner that properly balances the needs of retirement savers and small businesses.”

The group filing the suit,which includes the Securities Industry and Financial Markets Association (SIFMA), the U.S. Chamber of Commerce, the Financial Services Institute and the Financial Services Roundtable,issued a statement indicating that it is “now asking a court to review whether the Department of Labor overstepped its boundaries, creating a rule that will leave Americans with fewer retirement choices, higher costs and reduced access to professional financial advice.”

The statement adds that the new rule will create a new risk of class-action litigation for financial advisors.

“This lawsuit is necessary to prevent the Labor Department from exceeding the authority that was assigned to it by Congress,” the group stated. “More importantly, it will protect retirement savers and our member firms, who are committed to their financial futures.”

In the U.S., the SEC is working to develop its own uniform fiduciary standard.

In Canada, regulators released a consultation paper earlier this year that proposes a possible “best interests” standard for advisors, along with numerous other “targeted reforms” designed to enhance standards of conduct and improve investor protection.

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