Fred Reish Spoke With CNBC on New DOL Fiduciary Rule

Benefits and executive compensation partner Fred Reish spoke with CNBC on the Department of Labor’s new rule that aims to rein in the conflicts of interest that the Labor Department perceives in many recommendations that brokers, insurance agents, financial advisors and others give to investors in 401(k) plans and individual retirement accounts. 

However, two federal district courts in Texas issued a national “stay” of the regulation, in separate rulings in July, which indefinitely delays the rule’s Sept. 23 start date. Reish said, “It is almost a certainty that both courts will overturn.”

“The new fiduciary rules are somewhat different than those in the 2018 decision and it’s possible that there could be a different outcome,” Reish said in regard to a similar Labor Department rule issued during the Obama administration.

“If the Democrats retain control of the White House, they will likely pursue the case all the way to the Supreme Court,” if they were to suffer an adverse ruling, Reish explained.