Displaying items by tag: fifth circuit court
New Ruling Means DOL Rule is Gone
(Washington)
It was already all but over, but now it is really over and done with. States, including Oregon, California, and New York, made a last ditch (and well-worded we might add) bid to step in as defendants in the Fifth Circuit court case regarding the DOL fiduciary rule. The sates want to step in to appeal the rule. Last week was their second attempt to do so, and now the Fifth Circuit Court has turned down their second push, which means the ruling appears final. The denial was made by the same panel of judges as originally vacated the rule, though the denial was unanimous this time.
FINSUM: We think the rule is finally gone for good, but never say never in this story.
New Effort May Save DOL Fiduciary Rule
(Washington)
The fiduciary rule saga presses on. Just when it looked like it was all over and the DOL had finally avoided its own rule, the court battle is not over. A new group of state attorney generals has just asked the to be allowed to appeal the fifth circuit court’s ruling against the DOL rule. California, Oregon, and New York have all asked for a rehearing of the court’s May 2nd decision to deny their request to step in as defendant. In their appeal, the states said “The federal government is no longer pursuing this appeal … 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 the decision”.
FINSUM: This is dragging on so long it is even getting annoying to report on! This does not seem likely to be granted, but one can never be sure.
The DOL Rule Isn’t Dead Yet
(Washington)
Advisors have recently been feeling relieved about the fifth circuit court ruling that struck down the DOL’s version of the fiduciary rule. However, it may not be time to jump for joy yet. The fifth circuit is supposed to issue a mandate which vacates the rule, which takes it out of force. It is unclear why the fifth circuit court has not done so yet, but it is starting to make the industry nervous.
FINSUM: Most say the court simply has not gotten around to issuing the mandate yet, but that seems odd given it has been two months since the verdict. The next date to watch is May 16th, as that is the deadline for states and other entities to apply for appeals to the ruling.
The Fiduciary Rule’s Legal Chances are Gone
(Washington)
On Friday we reported that the DOL had let its deadline for asking for an appeal to its fifth circuit court loss pass. That meant the DOL could no longer challenge the ruling and was effectively letting the rule die. However, the AARP, as well as the states of California, Oregon, and New York, had all requested the court to let them stand in as defendants in an appeal. After about a week of time in limbo, the court has now denied all the requests, meaning case-closed, the DOL’s fiduciary rule is no more.
FINSUM: The DOL rule is so dead, that even the Consumer Federation of America, which was a major champion of it, has said it is now just focused on getting the best version of an SEC fiduciary rule.