District judge sets deadline in DOL fiduciary rule case

Industry plaintiffs who succeeded in vacating the regulation filed a motion seeking no further action

Jul 10, 2018 @ 2:09 pm

By Bruce Kelly

The Department of Labor's fiduciary rule continues its legal and procedural death throes, as three financial services industry lobbying groups opposing the regulation notified a federal court in Texas on Monday that they would seek no more action in the matter.

Chief judge Barbara M.G. Lynn of the U.S. district court for the northern district of Texas — who had upheld the rule in a decision on Feb. 8, 2017 — issued an order in late June that any parties involved in the matter who seek further remedy or relief must notify the court in writing by Thursday, July 12.

A court filing by plaintiffs in the complaint — the American Council of Life Insurers, the Chamber of Commerce and the Indexed Annuity Leadership Council — stated: "To the extent that the court takes any further steps, plaintiffs respectfully submit that the only remaining appropriate step would be to close the case."

The complaint was originally filed in 2016 against the Department of Labor and its then secretary Thomas Perez.

It remains to be seen whether any state attorneys general, which have attempted to save the DOL fiduciary rule on appeal but have failed, will act further. A spokeswoman for California's attorney general, Xavier Becerra, did not return a call Tuesday to comment.

The DOL's fiduciary rule has been essentially dead since the middle of March, when the U.S. 5th Circuit Court of Appeals issued a split decision that vacated the measure. After a delay of more than three months, the court issued a mandate June 21 that made effective its March decision.


What do you think?

View comments

Recommended for you

Featured video


What can advisers learn from the first female fighter pilot?

Pressure is pressure. Whether you are taking off from an aircraft carrier or dealing with the unforgiving movements of the market, you need to have a plan. Carey Lohrenz, the world's first female F-14 pilot, has some advice for advisers.

Latest news & opinion

10 most affordable U.S. cities for renters

Here are the U.S. cities that are most affordable for renters, according to Business Student.com, which compared the cost of rent to average salaries.

9 best - new - financial adviser jokes

Scroll through for nine new financial adviser laughs.

Captrust, prominent 401(k) advice firm, ramps up its wealth management business

Captrust wants to grow annual revenue from wealth management to 50% from 30% over the next five years.

Fidelity CEO says zero-fee funds aimed at expanding its universe

Johnson says way to prosper in financial services is 'by building relationships.'

9 signs it's time to fire your client

Here are signals that a client should be asked to leave, according to experienced financial advisers.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print