Minnesota judge denies Justice Department's request for stay in DOL fiduciary rule lawsuit

The judge said "mere speculation about the possibility of administrative action" by the Trump administration wasn't a strong enough reason to stay proceedings.

Feb 22, 2017 @ 2:01 pm

By Greg Iacurci

+ Zoom

A district court judge has denied the Justice Department's request for a stay in one of the several lawsuits brought against the Labor Department's fiduciary rule.

The Justice Department on Feb. 15 requested a stay in the lawsuit brought by Thrivent Financial for Lutherans, pending the results of a review of the rule directed by President Donald J. Trump.

Judge Susan Richard Nelson, of the U.S. District Court for the District of Minnesota, didn't buy this argument, saying "considerations of fairness to the opposing party mandate a presumption in favor of denying a motion to stay," according to the court order issued Tuesday.

The DOJ can overcome that presumption based on "proper facts," Ms. Nelson said, but "mere speculation about the possibility of administrative action — especially when compounded by uncertainty regarding what form that action might take — does not discharge that burden."

The fiduciary rule, which raises investment-advice standards in retirement accounts, has, to date, survived four court challenges brought by various financial industry groups.

There's a summary judgment hearing currently scheduled for March 3 in the Thrivent lawsuit.

0
Comments

What do you think?

View comments

Recommended for you

Latest news & opinion

The appeal and pitfalls of holding unconventional assets in retirement accounts

While non-traditional asset classes held in individual retirement accounts may have return and portfolio diversification benefits, there are "unique complexities" that limit their value for most investors.

Wells Fargo's move to boost signing bonuses could give it a lift

Wirehouse is seen as trying to shore up adviser ranks that took a hit after banking scandal

New Jersey fines David Lerner Associates for nontraded REIT sales

Firm will pay $650,000 for suitability, compliance and books and records violations.

Report predicts $400 trillion retirement savings gap by 2050

Shortfall driven by longer life spans and disappointing investment returns.

Wells Fargo will ramp up spending to lure brokers

Wirehouse, after losing 400 brokers in first quarter, is bucking trend among rivals who have said they are going to cut back on spending big bucks recruiting veteran advisers

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print