CEO DATELINE - Business groups appeal court decision upholding fiduciary rule
CEO DATELINE - Business groups appeal court decision upholding fiduciary rule
- February 27, 2017 |
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Walt Williams
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Five business groups have appealed a Feb. 8 federal court decision upholding an Obama-era rule requiring retirement investment advisers to put their clients' interests ahead of their own.
The group announced Friday they were challenging the decision by Chief District Judge Barbara Lynn of Texas, who upheld the U.S. Department of Labor's fiduciary rule for advisers. Lynn was the third federal judge to uphold the rule.
The fiduciary rule was adopted by DOL in April but immediately challenged by several business groups. A review of the rule was ordered by President Donald Trump, but while his administration has sought to delay implementation of the mandate, White House officials have not indicated whether they will eliminate it.
The plaintiffs in the lawsuit maintain DOL overstepped its authority.
"We have long supported a best interest standard, adopted by the appropriate regulatory authority and across all individual investor accounts, not just retirement," the groups said in a statement. "This is a misguided rule that will harm retirement savers and financial services firms that provide needed assistance and options to their clients, including modest savers and small business employees."
The U.S. Chamber of Commerce, Financial Services Institute, Financial Services Roundtable, Insured Retirement Institute and Securities Industry and Financial Markets Association are challenging the rule. They have appealed the court decision to the U.S. Court of Appeals for the Fifth Circuit. http://uscham.com/2mDpcfA
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