Fred Reish Comments on Pause in DOL Fiduciary Rule Appeal

Benefits and executive compensation partner Fred Reish discussed the Department of Labor (DOL) pausing its consolidated appeals of two district courts' universal stays of the DOL’s 2024 fiduciary rule with Financial Advisor and Think Advisor.

The publications reported that the rule toughens fiduciary standards and extends fiduciary responsibility to those selling annuities and IRAs to rollover investors. The pause would allow the new DOL officials sufficient time to become familiar with the issues in the cases "and determine how they wish to proceed,’” the Trump administration said.

"My view is that it is a fairly routine 'hold' pending a review by the new DOL Secretary and Assistant Secretary for the [Employee Benefits Security Administration], once both are confirmed and in place," explained Reish. "It means that the DOL could withdraw from the case, but it doesn’t necessarily mean that it will."

“This means that the decision about the DOL’s position in the appeals will be made by the new DOL leadership,” Reish added. “In all likelihood, that won’t happen until the new secretary of labor has been confirmed. While this suggests that the DOL might stop defending the Biden DOL’s fiduciary regulation, it does not necessarily mean that it will. We will likely know the outcome in a matter of weeks.”