The Department of Labor’s fiduciary-only rule will not go into effect. NAIFA has strongly opposed the misguided regulation, which would have restricted consumer choice and access to retirement advice. NAIFA was similarly instrumental in defeating an earlier version of the rule in 2016.

In a recent development, a federal court has dismissed the DOL’s appeal of a decision that stayed the Biden Administration-era regulation. The stay, which remains in place, was the result of a lawsuit filed by NAIFA, several NAIFA chapters in Texas, the American Council of Life Insurers, and others. The most recent decision came after the DOL requested to withdraw its appeal.

A joint statement from NAIFA, ACLI, and the other parties to the lawsuit says:

“The DOL’s fiduciary-only regulation resurrects a failed 2016 rule that prevented millions of consumers from accessing much-needed retirement financial guidance. Allowing the stay of the effective date to remain in place provides retirement savers with continued relief from these harmful consequences as the court considers the substantial legal issues we have raised regarding this ill-advised regulation.”

Although some procedural steps remain before the rule is history, the current decision is a meaningful advocacy win that not only protects NAIFA members but more importantly preserves consumer access to retirement services and protects the ability of Americans seeking retirement guidance to work with the financial professionals of their choice. The suit would not have been possible without NAIFA’s efforts and particularly those of NAIFA-Texas, NAIFA-Fort Worth, NAIFA-Dallas, and NAIFA-Pineywoods of East Texas, each of which was a plaintiff in the lawsuit.