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Specifically, the DOL withdrew its appeal concerning the stay imposed by two separate U.S. district courts in Texas.<\/p>\n
In September, the Trump DOL announced its plan to replace the fiduciary rule, officially known as the Retirement Security Rule, as part of its regulatory agenda. The 2024 rule particularly concerned rollovers from 401(k) and similar defined contribution plans.<\/p>\n
This rule was finalized in April 2024 and initially scheduled for implementation in September 2024, but the rule faced substantial legal opposition from various industry organizations and stakeholders.<\/p>\n
In July 2024, the U.S. District Court for the Northern District of Texas granted a nationwide stay on the rule in the case of\u00a0American Council of Life Insurers v. DOL. This ruling followed a more limited stay issued by the U.S. District Court for the Eastern District of Texas just one day prior in a different case,\u00a0Federation of Americans for Consumer Choice Inc. et al. v. DOL et al.<\/p>\n
Opponents of the fiduciary rule argued that it violated the Administrative Procedure Act by exceeding the DOL\u2019s authority under the Employee Retirement Income Security Act. They likened this regulatory overreach to a previous iteration of the rule from the administration of former President Barack Obama, which the 5th Circuit invalidated in 2018.<\/p>\n
In 2024, the DOL defended the expanded fiduciary obligations, asserting they prioritized trust and confidence in retirement rollover advice. Further complicating matters, the U.S. Supreme Court\u2019s decision in July 2024 in\u00a0Loper Bright Enterprises v. Raimondo\u00a0strengthened the case against the regulation by eliminating the Chevron doctrine of judicial deference to federal agency interpretation.<\/p>\n
The DOL\u2019s latest decision to abandon the fiduciary rule continues the Trump administration\u2019s track record of dismantling rules established under Biden.<\/p>\n
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Please contact Industry Intel at Industry Intel<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"The U.S. 5th Circuit Court of Appeals granted the Department of Labor\u2019s motion to withdraw its defense of…\n","protected":false},"author":2,"featured_media":327568,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":{"0":"post-327567","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-personal-finance","10":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/327567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=327567"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/327567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/327568"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=327567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=327567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=327567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}