In “DOL Rule Lawsuits Having Little Impact On Advisors, Panel Says,” InsuranceNewsNet summarized comments from benefits and executive compensation partners Joshua Waldbeser and Fred Reish on whether a pair of lawsuits will do anything to slow down the Department of Labor’s (DOL) push to extend the fiduciary standard.
During a Faegre Drinker webinar, Waldbeser said, “We expect the DOL as a matter of procedure to take the position that these can’t really be litigated yet.” He added, “You can’t really sue based on anticipation of enforcement. That there’s actually going to have to be some enforcement of this new interpretation that has an effect on insurance agents before it can actually be litigated.”
Reish explained that the new DOL fiduciary definition could be effective by the end of 2022 or early 2023 and will replace the key Investment Advice Rule exemption. “These lawsuits will have essentially a basic life expectancy from Feb. 1, 2022, to whatever date that is that the new final regulation becomes effective,” he noted. “Then there would have to be a lawsuit against that regulation. Reish also stated that the only thing for advisers and firms to do is to be in compliance.