Texas Federal Court Rules on Challenge to DOL Fiduciary Rule

On Feb. 8, 2017, the federal district court in Dallas upheld the DOL fiduciary rule in a disappointing ruling on the legal challenge brought by NAIFA, ACLI, and other industry groups.

In June, NAIFA, NAIFA-Texas, and five NAIFA local associations in Texas (in Amarillo, Dallas, Fort-Worth, Great-Southwest, and WichitaFalls), joined the ACLI in challenging the DOL fiduciary rule because of grave concerns that the rule will improperly reduce consumer access to professional retirement advice. The NAIFA-ACLI case was consolidated with two other cases brought against the DOL in Texas, by the Chamber of Commerce (and others) and the Indexed Annuity Leadership Council, and all three cases were before Chief Judge Barbara Lynn.

In response to the Feb. 8 ruling, ACLI’s general counsel expressed the view of our associations, stating that “ACLI and NAIFA continue to believe that the regulation is arbitrary and capricious, contrary to law and violates the First Amendment. We support responsible and balanced regulations that protect the interests of retirement consumers. But the regulation is neither reasonable nor balanced. It will harm the very people it is meant to help - retirement savers who now, more than ever, need access to the guaranteed lifetime income products (personal pensions) offered by ACLI and NAIFA members. It is essential that all Americans receive the financial advice they want and need. This decision underscores the urgency for the administration to act immediately to delay this misguided regulation. A delay will provide time for the administration to conduct a thoughtful review and to work with ACLI, NAIFA and other stakeholders toward public policies that help Americans achieve their financial and retirement security goals.”

NAIFA will continue to consider and act on its strategy to leverage all three branches of government to seek public policy that allows NAIFA members to help Main Street Americans save and build retirement security.

NAIFA will keep members updated on developments concerning the DOL fiduciary rule in GovCommunications and will let members know what they can do to help with this important issue.
 
  • Posted February 9, 2017 IN


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