Removing Barriers Blog

Federal Court Overturns DOL Fiduciary Rule
Posted March 18, 2018 by CUNA Advocacy

Last week, the Fifth Circuit Court of Appeals vacated the Department of Labor’s Fiduciary rule. It was found that the DOL had exceeded its statutory authority in promulgating the rule. There is a 14 day stay following the issuance of the decision and would become applicable on May 7. 

The DOL could request a rehearing en banc, which is unlikely since the DOL has expressed many concerns with this rule after the change in Administration.  Notably however, the Tenth Circuit recently issued a conflicting decision which upholds aspects of the rule. So, there is now a circuit split concerning the rule, which could ultimately go to the Supreme Court. Petitions for certiorari must be filed 90 days after the circuit court decision. 

CUNA previously urged the DOL to consider allowing additional time for research and analysis about the impact of the rule on low and moderate-income consumer. Additionally, we have supported a delayed implementation period to allow credit unions additional time to resolve any compliance and applicability complexities associated with the rule. 

Credit unions should visit the Compblog for more information about compliance with the Fiduciary rule. CUNA will continue to engage with the DOL as it considers its next steps concerning this rule.