Washington, D.C. counsel Brad Campbell was quoted in an Investment News article titled, “NAFA appeals court victory for DOL fiduciary rule.” Following a suit brought by the National Association for Fixed Annuities (NAFA), the DOL fiduciary rule was upheld by a federal court judge in Washington, D.C., on November 4. NAFA is appealing the decision and seeking expedited review. Other suits in Dallas, Kansas and Minnesota are currently underway.
Those in the industry have brought the suits stating the rule will significantly increase liability risk and regulatory costs for financial advisers. Brad stated that the DOL is creating a new cause of action.
“DOL is creating a new cause of action with respect to IRAs that it has no authority to create, and DOL's argument that it was merely adding terms to a state law contract is, as the plaintiffs argue, a sophistry,” Brad said. “I hope the judges in the remaining cases recognize this.”