Fred Reish Comments on Future DOL’s Fiduciary Rule After Court Ordered Stay

Benefits and executive compensation partner Fred Reish explained a court-ordered stay of the Department of Labor’s (DOL) new retirement security rule in articles for Bloomberg Law and Investment News. 

The publications reported that the rule, which was to become effective in September, hit a roadblock when two Texas federal courts granted a temporary stay after insurance industry stakeholders brought a lawsuit seeking to block the rule in May, arguing the DOL overreached its authority with the rule in violation of the Administrative Procedure Act. 

Reish noted that during an appeal on the order granting a stay, the district courts will move forward with the case to determine whether or not to overturn the regulation, which will likely result in another appeal. 

“Regardless of what the appellate panel decides, the losing party will almost certainly ask for an en banc review by all of the Fifth Circuit judges,” Reish said. “It is even possible that this is headed to a final decision, one way or the other, by the Supreme Court.”

While the stay is in effect, current fiduciary regulation will continue until the stay is lifted, Reish explained.