February 16, 2023

Fred Reish Comments on DOL Retirement Adviser Rule With Bloomberg Law and Financial Advisor Magazine

Bloomberg Law and Financial Advisor Magazine spoke to benefits and executive compensation partner Fred Reish about a United States District Court in Florida striking down the Department of Labor’s (DOL) fiduciary guidance involving rollovers.

In “Court Defeat is Guide for Labor Agency Retirement Adviser Rule,” Reish commented, “The court’s decision almost certainly increases the urgency for the DOL to issue a proposed regulation that defines rollover recommendations as fiduciary advice, subject to the fiduciary standard of care and the limitations on conflicts.”

In “Rollover Regs In Limbo After Judge Strikes Down DOL Rule,” Reish said, “The decision by the Florida court is just the first step in a long process. It will likely be followed by a DOL appeal and probably by a new regulation. We could be in a state of legal flux for a year or more.”

Reish also noted that he expects the DOL to challenge the ruling. “I think that it is likely that the DOL will appeal. If an appellate court agrees with the DOL, it would be helpful in terms of a new fiduciary regulation. In addition, it buys time for a new rule to be developed.”

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