DOL Fiduciary Rule 99% Dead After Appeal Denied - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Top Stories
Top Stories RSS Get our newsletter
Order Prints
May 22, 2018 Top Stories No comments
Share
Share
Tweet
Email

DOL Fiduciary Rule 99% Dead After Appeal Denied

By John Hilton InsuranceNewsNet

The Fifth Circuit Court of Appeals rejected an appeal by a trio of states today, clearing the way for the controversial Department of Labor fiduciary rule to be officially killed.

The final action appears to be for the court to issue a mandate to vacate the rule. With all appeals exhausted, that mandate could come quickly. The government technically has until June 13 to appeal to the Supreme Court, but the Trump administration passed on all appeals to date.

California, New York and Oregon filed its long-shot appeal last week for the court to reconsider its request for a full review. The Fifth Circuit had denied the states' request for appeal in a May 2 decision.

In its appeal, the states' attorneys noted that the federal government is not appealing the Fifth Circuit's March 15 decision tossing out the controversial Obama-era fiduciary rule.

"Given that posture, the exceptional importance of the issues, and the grave harm the States will suffer as a result of the panel opinion -- billions of dollars in lost retirement income to their residents and tens of millions of dollars in lost tax revenue -- the States respectfully request that the Court reconsider its decision," the appeal read.

The court was unmoved. In addition to denying the appeal a second time, the court denied state's request to file a petition seeking a full court review.

The states sought a full review in front of the entire Fifth Circuit court, known as an en banc review. The Fifth Circuit's 2-1 decision came down March 15, reversing several losses by industry opponents in courts from Kansas to Washington, D.C.

Judge Edith H. Jones wrote in the majority opinion that the DOL rule "fails the reasonableness test" of the Administrative Procedures Act by extending the department's ERISA authority to one-time IRA rollovers and similar transactions.

The decision went on to admonish the DOL for exceeding its authority and re-affirmed the role of Congress and the Securities and Exchange Commission in regulating agents and advisors.

The DOL rule was created by the Obama administration, but President Donald J. Trump ordered the DOL to delay and further study the rule soon after taking office.

Parts of the rule went into effect June 9, but the more stringent exemptions needed to sell variable and fixed indexed annuities were delayed until July 2019.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected].

© Entire contents copyright 2018 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Older

Indexed Annuity Sales Bust Out Of 2018 Gate

Newer

LIMRA’s VA Sales Forecast Swings Positive

Advisor News

  • How to enhance your client’s retirement plan through the SECURE 2.0 Act
  • Creating financially fearless female investors
  • Todd Shea: Have your clients considered putting their property into a trust?
  • Fed’s Barr acknowledges oversight lapses before SVB failure
  • What happens if you work while receiving Social Security?
Sponsor
More Advisor News

Annuity News

  • Commentary: Why Monte Carlo simulations can sell retirement investors short
  • Rethinking a 2023 rebalance as rate hikes remain
  • Why MYGAs are enjoying a renaissance
  • Nationwide and Fidelity Investments establish distribution relationship
  • Conning: Growing demand for in-plan annuities creates opportunity for insurers
Sponsor
More Annuity News

Health/Employee Benefits News

  • State informing nearly 1 million New Mexicans that Medicaid enrollment no long automatic
  • Nevada's Rosen opposes changes to Medicare Advantage funding formula
  • Newtown psychologist admits to $79K Medicaid fraud
  • Obamacare’s good Rx: Republican-leaning states wake up to the value of expanding Medicaid eligibility
  • ACA ruling hits preventive care, but ‘isn’t a fatal blow,’ analyst says
More Health/Employee Benefits News

Life Insurance News

  • AM Best will be ‘all over’ life insurers if high-risk assets escalate
  • Life insurance industry sales focus change cited in falling policy counts
  • State insurance regulators pursue more data on industry use of AI
  • Modern Life announces distribution partnership with Symetra
  • LIMRA: Life insurance premium expected to maintain record levels through 2024
More Life Insurance News

- Presented By -

Top Read Stories

  • Property and Casualty Insurance Market to See Huge Growth in Future | State Farm, Liberty Mutual, Allstate
  • Life insurance illustration rules on the clock as full rework looms
  • State insurance regulators pursue more data on industry use of AI
  • State insurance regulators resume effort to clean up misleading health ads
  • Investors, regulators, legislators anxious as banking system faces another shaky week
More Top Read Stories >

Press Releases

  • Insurity’s Annual Event, Excellence in Insurance, Set to Attract the Largest Number of Carriers & MGAs Using Cloud-Based Software
  • RFP #T01523
  • Senior Market Sales Enters Under-65 Individual Health Insurance Market With Acquisition of O’Neill Marketing
  • RFP #T01723
  • Trusted by 22 of the Top 25 Property and Casualty Carriers, Insurity Strengthens Its Position as a Top 2 Core System Provider for P&C Software
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.