Los Angeles partner Fred Reish was quoted in The New York Times article “Court Overturns Obama-Era Rule on Retirement Planners.” The article discusses the impact of the United States Court of Appeals for the Fifth Circuit overturning a lower court’s ruling on the Department of Labor (DOL)’s fiduciary rule. The appellate court ruled that the DOL overstepped its authority when it wrote a rule that required financial professionals to put their customers’ financial interests ahead of their own.
However, the court’s decision does not necessarily mean the end of the fiduciary rule. The DOL may request that all judges in the appeals court hear the case, instead of the three-judge panel that issued the original ruling. Additionally, the Supreme Court could eventually weigh in, since there was one decision in another circuit court that conflicts with the most recent case. Due to these factors, Fred stated that “[t]he outcome could continue to be uncertain for quite a while.”