A client alert written by Drinker Biddle’s Financial Services team, titled “Fifth Circuit Vacates Fiduciary Rule,” was quoted in the HR Daily Advisor article “Supreme Court May Have to Decide Fate of DOL Fiduciary Rule.” As the article explains, there is a possibility that the fiduciary rule will land on the U.S. Supreme Court’s docket, since the U.S. Court of Appeals for the Fifth Circuit has vacated the rule. The Department of Labor (DOL) has 45 days from the appellate court’s entry of judgment to request that all Fifth Circuit judges re-hear the case en banc. The DOL has announced it will not enforce the fiduciary rule until further review.
The Financial Services team wrote that “[i]f the DOL doesn’t take additional steps, we revert to the old ‘five-part’ fiduciary advice definition…In addition, [t]he Best Interest and other Impartial Conduct Standards [BICE] will go away. If a request for re-hearing is granted, it seems likely the court will grant a ‘stay,’ i.e., the decision will not apply until a decision by the full Fifth Circuit.” Our attorneys also spoke to the possibility of a stay of the case for a Supreme Court appeal and what would happen if a stay were granted.
Read the Financial Services Team’s alert, “Fifth Circuit Vacates Fiduciary Rule.”