CEO DATELINE - Judge strikes down association challenge of fiduciary rule
CEO DATELINE - Judge strikes down association challenge of fiduciary rule
- November 7, 2016 |
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Walt Williams
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The new federal rule requiring retirement investment advisers to put their clients' interests ahead of their own survived its first legal challenge Friday, with a U.S. District Court judge ruling against a lawsuit brought by the National Association of Fixed Annuities.
The "fiduciary rule" adopted by the U.S. Department of Labor in April was immediately challenged by several business groups, including the U.S. Chamber of Commerce. In its lawsuit, NAFA claimed the rule would lead to "catastrophic consequences" for the fixed indexed annuities industry and the department exceeded its statutory authority by adopting it, Bloomberg BNA reported.
U.S. District Court Judge Randolph Moss rejected each of NAFA's arguments in a 92-page decision. He denied the association's request for a temporary block of the rule and granted DOL's motion for summary judgment.
NAFA did not say whether it intended to appeal the ruling. The lawsuit was filed in U.S. District Court of D.C. Other lawsuits by other organizations are pending in Kansas and Texas district courts. http://bit.ly/2fw7R6d
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