- A U.S. federal judge upheld the legality of the fiduciary rule, claiming the the Department of Labor did not overstep its bounds in creating the rule and did proper due diligence concerning cost-benefit analysis, according to media reports.
- Hours before the decision was handed down, the Trump administration had asked for the ruling to be stayed in light of the executive order calling for the rule to be reviewed. That request was denied. The delay is still in place, however.
- The decision by the U.S. District Court for the Northern District of Texas may be a "stunning defeat" for business groups that want to see the rule repealed, Reuters reports. This is the second court that has upheld the rule.
While the executive order demanding a delay on the rule's implementation still holds, this new ruling makes it much harder for the new DOL to find a reason to scrap it. President Donald Trump's call to delay the rule was widely seen as an attempt to stall out and potentially kill the rule entirely, but it may yet survive the review process.
The rule was created in order to protect plan participants from brokers offering plans with a slew of hidden fees. The reach of the rule may go beyond 401ks. HSAs may also be impacted, though most of the compliance burden will be on any plan advisors or providers that HR hires.