AARP seeks to defend DOL fiduciary rule in 5th Circuit

Massive interest group has concerns the Labor Department will not request a rehearing of its vacated regulation by April 30 deadline.
APR 26, 2018

One of the most powerful proponents for the Labor Department's fiduciary rule will try to protect the measure in court, where it could die as early as Monday. AARP, the massive interest group for retired Americans, said Thursday it will file papers in the 5th Circuit Court of Appeals asking the court for permission to intervene as a defendant in a lawsuit against the DOL regulation. In a split decision on March 15, a three-judge panel in the 5th Circuit struck down the DOL rule, which would require brokers to act in the best interests of their clients in retirement accounts. The court decision was a victory for financial-industry opponents of the rule, who argue the DOL overstepped its authority in promulgating what they call a complex and costly regulation. (More: The latest news and resources on the DOL fiduciary rule) The Department of Justice, on behalf of the DOL, has until April 30 to appeal the 5th Circuit decision. On Wednesday, a DOJ spokeswoman declined to comment. It's likely the Trump administration, which has delayed full implementation of the DOL rule until July 2019 while it reviews the regulation in a study that could lead to major changes, will abandon the rule in court. But AARP and other proponents say the DOL rule mitigates broker conflicts that erode Americans' retirement savings. "AARP is not giving up on our fight to make sure that hard-earned retirement savings have strong protections from conflicts and hidden fees," said Nancy LeaMond, AARP's chief advocacy and engagement officer. "Many financial advisers already give advice with the public's best interests in mind. But the recent court decision allows some financial advisers to provide guidance based on what's best for their pocketbooks, not the consumers'."

Latest News

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

'We are monitoring the situation,' SEC says of private funds
'We are monitoring the situation,' SEC says of private funds

New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline