FACC reminds court that DOL fiduciary rule injunction decision is urgent

Plaintiffs are asking for a quick court decision on a request to stop the DOL fiduciary rule from taking effect.

By John Hilton

The Department of Labor's new Retirement Security Rule, a fiduciary rule in practice, takes effect Sept. 23. That date will only change if a federal court grants at least one of two requests for a preliminary injunction.

The Federation of Americans for Consumer Choice asked Judge Jeremy D. Kernodle this week to make his injunction decision as soon as possible. A FACC brief filed Wednesday asks for a decision by July 26 at the latest.

"Thousands of other insurance agents, insurance agencies, and related parties across the United States will be required to comply with the requirements of the new rules," the brief states. "Such compliance requires significant lead time for the Plaintiffs and similarly situated parties to implement the new rules."

A briefing schedule set out by the court will wrap up on July 10, FACC attorneys noted. If the court wishes to hear oral arguments, "the parties have conferred and can be available July 19 and July 23-25," the brief says.

FACC filed its lawsuit May 2 against the DOL rule, formally asking for an injunction two weeks later. The DOL Retirement Security Rule was published April 25 in the Federal Register. It extends a fiduciary standard of care to most annuity transactions.

FACC is joined by several independent insurance agents in the lawsuit filed in the Eastern District of Texas. The court is noteworthy for being within the Court of Appeals for the Fifth Circuit, known for its conservative opinions, including a 2018 decision to vacate the previous fiduciary rule put forth by the Obama administration.

FACC is represented by Figari & Davenport, which also represents FACC in its existing lawsuit against the DOL challenging the department’s 2020 guidance on who is considered a fiduciary.

If granted, a preliminary injunction would merely stop the new rule from taking effect while the case is being heard.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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]. Follow him on Twitter @INNJohnH.