Two lawsuits have just been filed to challenge and overturn the DOL’s Fiduciary Regulation. The first suit was filed on Wednesday June 1st, by the U.S. Chamber of Commerce (USCC), SIFMA and seven other organizations. The second was filed yesterday on June 2nd, by the National Association for Fixed Annuities. The USCC suit is very broad in scope and would essentially, if successful, gut much of the regulation. The NAFA suit is more narrowly focused on the impacts of the regulation on the sale of fixed index annuities.
Will there be other suits? – The American Council of Life Insurers has said they were considering a suit, and there have been rumblings of other suits as well.
June 7th is the date to watch (this coming Tuesday) – lawsuits would have to be filed before this date (June 7th is the date when the rule becomes “effective”) to obtain an injunction. Action after June 7th is still possible, but not an injunction.
A good opinion piece on impacts of delay and the possibility for killing the rule – Investment News has a good overview/opinion piece on potential impacts of delay on the regulation.
Please share with us any opinions you might have.
Director of Market Research and Product Management
Smart data that speaks to your markets