Fifth Circuit Vacates DOL Rule

On Thursday, March 15, the US Court of Appeals for the Fifth Circuit issued a 2-1 decision to vacate the DOL’s Fiduciary Rule.

In issuing its decision, the Fifth Circuit ruled that the DOL exceeded its regulatory authority in promulgating the Rule.

The appeal was filed on behalf of several industry trade groups including the US Chamber of Commerce, the Financial Services Institute (FSI), the Securities Industry and Financial Market Association (SIFMA), the American Council of Life Insurers (ACLI), the Insured Retirement Institute (IRI) and the National Association of Insurance and Financial Advisors (NAIFA) to appeal a decision in support of the DOL Fiduciary Rule issued by a US District Court in the Northern District of Texas several months ago.

The ruling puts in question the future of the DOL Fiduciary Rule.

According to industry reports, the DOL has several options to consider including a possible appeal of the Fifth Circuit decision to the US Supreme Court.

A copy of the Fifth Circuit decision can be found here.

CEFLI will continue to monitor these developments and provide updated information as warranted.