The court revokes the Obama era rule over retirement planners



As a next step, the Department of Labor can request that all judges of the appellate court hear the case, instead of the panel of three judges, the attorneys said. Because there was at least one decision in another circuit court that conflicts with the most recent case, it is also possible that the Supreme Court may eventually intervene.

"The result could remain uncertain for quite some time," said Fred. Reish, a lawyer who represents clients in fiduciary matters.

The fiduciary regulation of the Obama era, drafted for approximately six years, had so far survived the intense criticism and resistance of the industry, which argued that the rule would make it too expensive to work with smaller investors. The standard, which came into force in June of 2017, requires financial advisers to act as fiduciaries when providing advice related to a client's retirement accounts, including individual retirement accounts and 401 (k).

The future of the rule was already cloudy. The Labor Department of the Trump administration, which oversees retirement accounts, said last year that it was reviewing the regulation and delayed its full implementation in 18 months, until July 2019.

Consumer advocates and others are In favor of a strong fiduciary rule, he called the decision a blow for the savers.

"This case was wrongly decided," said Micah Hauptman, financial services advisor to the Federation of Consumers of America. "Opponents of the industry went to the buying forum and finally found a court that was willing to give in to their false arguments, this is a sad day for savers."

Several of the plaintiffs – including the US Chamber of Commerce. The Institute of Financial Services, the Financial Services Round Table, the Insured Retirement Institute and the Association of Financial Markets and Securities Industry – said the court's decision to preserve access to affordable financial advice.

"Our organizations have long supported the development of a service standard of best interest," they said in a statement, "and the Securities and Exchange Commission should take the initiative in a clear and coherent manner. viable standard that does not limit the choice for investors ".

The SEC is reportedly working on its own rule. But consumer advocates have said for a long time that the financial services industry would prefer that the S.E.C. write a rule, which they believe would not be as strong as the rule of the Department of Labor.

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The Labor Department could not be contacted immediately for comments on Thursday night.

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