Federal Judge Upholds Fiduciary Rule
A federal judge in Texas has ruled against life insurers and business groups challenging the U.S. Department of Labor’s (DOL’s) fiduciary rule. Judge Barbara M.G. Lynn rejected a host of arguments from the American Council of Life Insurers (ACLI), the U.S. Chamber of Commerce and the Indexed Annuity Leadership Council.
The fiduciary rule, issued in April 2016, requires investment brokers to put clients’ interests ahead of their own when giving retirement advice. Opponents to the rule say it will lead to higher investment fees and a smaller industry from which to seek advice for those planning retirement. The ACLI and the National Association of Insurance and Financial Advisers (NAIFA) said in a statement they were disappointed with Judge Lynn’s decision.
The Trump administration has directed the Labor Department to undertake a new analysis to assess whether the rule is likely to harm consumers and rescind or revise the rule if necessary.