Removing Barriers Blog

President Obama Vetoes Congressional Attempt to Block DOL Fiduciary Rule
Posted June 09, 2016 by CUNA Advocacy

As expected, a resolution of disapproval under the Congressional Review Act for the Department of Labor’s (DOL) Fiduciary rule approved by both chambers of Congress, was vetoed by the President this week. The vetoed resolution, if signed, would have blocked the Fiduciary Rule that was finalized in April. 

The fiduciary rule is also being challenged in several different courts. A hearing has been set for a lawsuit filed by the National Association for Fixed Annuities in the U.S. District Court for the District of Columbia for August 25. The U.S. Chamber of Commerce and other groups including the Financial Services Roundtable and the Securities Industry and Financial Markets Association also filed a lawsuit in a federal court in Dallas, Texas. 

The DOL’s rule defines who is a “fiduciary” of an employee benefit plan, adding brokers and advisers providing advice to individual retirement accounts. 

CUNA appreciated modifications to the rule, but still believes the rule will add additional compliance burdens to credit union service organizations, and potentially credit unions. We will be monitoring the lawsuits as they proceed.