Fifth Circuit Issues Mandate Vacating DOL Fiduciary Rule

The U.S. Court of Appeals for the Fifth Circuit today issued its formal mandate to vacate the Department of Labor’s fiduciary rule for advisors working with retirement accounts. The mandate puts into force the court’s decision of March 15.

NAIFA worked tirelessly to reduce and eliminate the damage of the DOL rule to advisors and their clients. We worked with members of Congress, regulators from two administrations, and the federal courts to ensure that the rule did not harm advisors or prevent lower- or middle-income Americans from getting retirement products and advice.

Our ultimate success came when we joined the American Council of Life Insurers and other industry partners to challenge the rule in court. The March 15 ruling validated our efforts.

Most recently, attorneys for NAIFA and the ACLI sent a letter to the court expressing concern that it had not issued the mandate formally vacating the rule. The lack of a mandate, the letter explained, meant that the DOL rule continued to create uncertainty in the marketplace and impact the business of advisors and financial institutions.

The court issued the mandate just two weeks on the heels of the letter.

“The Fifth Circuit mandate puts the DOL fiduciary rule to rest once and for all,” said NAIFA CEO Kevin Mayeux. “Advisors can now confidently move forward, helping their clients prepare for retirement without the shadow of the rule looming over them.”

“This is a good day for consumers as well as advisors,” Mayeux added. “The court’s decision does away with restrictions that had placed unnecessary barriers between advisors and their clients and would have made it more difficult for people of moderate or modest means to get help with retirement planning and preparation.”    
 
  • Posted June 21, 2018 IN
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Comments
Joe Arnold Walker
It sounds very good.
6/22/2018 3:47:53 PM