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Financial Advisory  + Broker/Dealers  + Economy  + Regulation  + RIAs & Financial Advisors  | 
DOL Hits Pause Button on Fiduciary Rule Appeal 

DOL Hits Pause Button on Fiduciary Rule Appeal 

The Department of Labor (DOL) filed a motion this week in the U.S. 5th Circuit Court of Appeals, requesting a delay in its appeals regarding two court cases related to the 2024 Retirement Security Rule fiduciary rule. The DOL cited the need for the new administration and agency officials to have time to onboard and familiarize themselves with the cases. 

“To allow new DOL officials sufficient time to become familiar with the issues in these cases and determine how they wish to proceed, the government respectfully moves to place these consolidated appeals in abeyance, with status reports due at 60-day intervals,” the agency said in the motion. 

The appeals were filed in response to two cases. The first was brought by the Federation of Americans for Consumer Choice (FACC) in the Eastern District of Texas. The second case was filed by a group of organizations, including the American Council of Life Insurers, Insured Retirement Institute, National Association of Insurance and Financial Advisors, and others, in the Northern District of Texas. 

In July, while hearing the case brought by the FACC, Judge Jeremy Kernodle of the U.S. District Court in Tyler, Texas, issued a stay on the rule, just two months before it was set to take effect. 

The Department of Labor (DOL), which has been working on various versions of the fiduciary rule for 15 years, filed a notice to appeal the stays in September. 

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.