NEW YORK (Reuters) – The U.S. government will likely water down a key part of a landmark retirement rule, lawyers for the Department of Labor said, signaling that the government will offer an out for brokerages that would have been subject to class action lawsuits.

Thrivent Financial, a Minneapolis-based asset manager, has asked a federal court in Minnesota to block an anti-arbitration provision in the government’s fiduciary rule. The provision allows unhappy clients to sue their brokers, a first in an industry which has always required customer disputes be arbitrated.

In a brief filed last week, Labor Department lawyer…
Reuters: Money