Justice Department seeks stay in DOL fiduciary rule lawsuit

The Department of Justice filed a motion in a Dallas federal court on Wednesday asking the judge to stay proceedings in a lawsuit against a Labor Department investment advice rule. The DOJ attorneys asked that the court not issue a ruling pending a “status report” it plans to file on or around March 10 regarding President Donald Trump's Feb. 3 memo directing the DOL to review its fiduciary rule. The rule requires advisers to act in the best interests of clients in retirement accounts. The Labor Department is deciding whether to delay the rule's April 10 applicability date in order to conduct a new cost-benefit analysis that Mr. Trump mandated. (More: The latest news and resources on the DOL fiduciary rule) “[T]he outcome of the Department's review may differ in relevant ways from the April 8, 2016, rulemaking challenged by plantiffs,” the DOJ motion states. “For example, although the Department conducted an exhaustive regulatory-impact analysis in this rulemaking, its cost-benefit analysis was challenged in this litigation and could be updated. The rulemaking additionally could be 'revised or rescinded.'” Chief Judge Barbara M.G. Lynn recently indicated she would rule on the case by Feb. 10.