After the U.S. Department of Labor announced it will suspend enforcement of the fiduciary rule due to a federal appeals court ruling, the financial and business magazine Pensions & Investments quoted McGuireWoods counsel James McElligott Jr. on the decision’s impact in a March 16 story.
The 5th U.S. Circuit Court of Appeals vacated an Obama-era rule requiring financial advisers to adopt a “best interest” standard for their clients with retirement accounts. In response to the court’s ruling, the Department of Labor (DOL) announced it will not enforce the rule “pending further review.”
“It’s a blockbuster decision,” McElligott said. “Although the DOL will not be enforcing the rule ‘pending further review,’ given the challenge to DOL authority, we should not be surprised if DOL seeks some review of the 5th Circuit decision.”