On May 7, 2018, the DOL issued a Field Assistance Bulletin (“FAB”) addressing the Department’s enforcement policy on the fiduciary rule that was recently vacated by the Fifth Circuit. Although the DOL has elected not to continue defending the rule before the Fifth Circuit, the FAB leaves the rule’s status in a holding pattern.
Best Interest Contract Exemption
Confusion Ensues After Appeal Over Fiduciary Rule in D.C. Circuit Dropped
By Seth Safra, Russell Hirschhorn & Steven A. Sutro on
On March 23, 2018, the National Association for Fixed Annuities (“NAFA”) and the Department of Labor filed a Joint Stipulation of Dismissal of litigation involving the Department’s fiduciary rule in the District of Columbia Circuit. NAFA had appealed a district court decision that dismissed NAFA’s challenge to the fiduciary rule. The decision to drop that…
Fifth Circuit Vacates DOL Fiduciary Rule
By Seth Safra, Russell Hirschhorn & Steven A. Sutro on
In a 2-1 decision, the U.S. Court of Appeals for the Fifth Circuit vacated the Department of Labor’s fiduciary rule, including the expanded definition of “investment advice fiduciary” and the associated exemptions. The decision nullifies the Department’s 2016 regulation—at least in the Fifth Circuit, which includes Texas, Louisiana, and Mississippi, and arguably nationwide—but is not…
Department of Labor Finalizes 18-Month Delay of Fiduciary Rule Exemptions
By Russell Hirschhorn, Ruthanne Minoru & Seth Safra on
On November 27, 2017, the Department of Labor (“DOL”) finalized the delay of the applicability date for certain conditions for exemptions to the fiduciary rule until July 1, 2019. This delay was initially proposed in late August as described here.
Although certain requirements have been delayed, the fiduciary rule’s broad definition of “fiduciary” and…