Trump gives federal agencies power to hire in-house judges

Trump gives federal agencies power to hire in-house judges
Administration seeks to head off turmoil resulting from Supreme Court's recent decision on administrative law judges.
JUL 11, 2018
By  Bloomberg

President Donald J. Trump, seeking to head off some of the turmoil from a recent Supreme Court decision, issued an order Tuesday empowering the heads of federal agencies to directly appoint judges who decide cases ranging from Wall Street sanctions to environmental disputes. The Supreme Court undermined the authority of administrative law judges last month by ruling that they are constitutional officers, potentially casting doubt on whether some of their appointments were properly handled and opening up hundreds of cases to potential legal challenges. The Supreme Court ruling pertained to the Securities and Exchange Commission, a top financial regulator that is one of dozens of federal agencies that use the in-house judges to rule on internal trials and disputes. Now, many other cases may have to be reconsidered because of improperly hired judges, said James Sherk, a special assistant to the president for domestic policy. "We're already aware of hundreds of these challenges being brought," Mr. Sherk told reporters Tuesday. Mr. Trump's order grants agency chiefs greater leeway to choose judges, which could also allow them to ratify currently sitting judges at the Social Security Administration, Department of Health and Human Services, Department of Labor and several other agencies — including a number of financial regulators. Still, the Supreme Court decision leaves many of the administrative law judges' past decisions in jeopardy. The high court said administrative law judges must be appointed by the president or heads of agencies, not hired as ordinary government workers. Mr. Trump's order discards a complex Office of Personnel Management selection process and establishes a new employment status that allows agencies to appoint judges much like they now hire federal attorneys. (More: Supreme Court ruling on SEC judges unlikely to upend advice industry)

Latest News

RIA moves: PE-backed Arax strengthens Midwestern presence with Summit Wealth Strategies
RIA moves: PE-backed Arax strengthens Midwestern presence with Summit Wealth Strategies

Meanwhile, $34 billion independent First Manhattan welcomed New Jersey-based Roanoke Asset Management, an RIA firm with more than 40 years of history.

LPL names Emily Field as chief people officer amid Commonwealth integration push
LPL names Emily Field as chief people officer amid Commonwealth integration push

The McKinsey veteran brings her expertise as LPL targets a lofty 90% advisor retention rate from its acquisition and integration of the $300 billion RIA.

Court rejects Perfection Bakeries' $2M pension credit in key ERISA case
Court rejects Perfection Bakeries' $2M pension credit in key ERISA case

An appeals court sided with a pension fund, ruling Perfection Bakeries must apply a $2M credit earlier in its withdrawal liability calculation.

Milton seeks Sanctuary in break for independence, reunites with former Merrill colleague
Milton seeks Sanctuary in break for independence, reunites with former Merrill colleague

Veteran advisor managing $400M launches firm through strategic partnership.

Fintech bytes: Altruist launches new subscription service for RIA custody
Fintech bytes: Altruist launches new subscription service for RIA custody

Also, Nitrogen has added Indivisible Partners to its integration network, while Wealthtender unveiled an AI-focused update to help boost advisors' online presence.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.