NAFA to Appeal DOL Fiduciary Rule Defeat, Will Seek Expedited Review
The National Association for Fixed Annuities revealed on Monday that they plan to appeal Friday’s federal district court decision that upheld the Department of Labor’s fiduciary rule. NAFA intends to move quickly to get the case to the appellate court and will continue to seek a preliminary injunction.
As reported by The DI Wire yesterday, judge Randall Moss issued a 92-page memorandum opinion which rejected NAFA’s arguments and instead granted the Department of Labor’s cross-motion for summary judgement. NAFA filed its lawsuit in June seeking a preliminary injunction to stay implementation of the rule, which is scheduled to go into effect in April 2017.
“We are obviously disappointed by the court’s decision, but we have always assumed this case would get decided by a higher court and we are pleased the issues will get de novo review by the Circuit Court,” said Chip Anderson, executive director of NAFA.
De novo review means the appellate court will consider the case without being bound or influenced by the lower court’s decision.
NAFA’s lawsuit challenges the DOL’s authority to issue the rule on the grounds that “the rule creates an impermissible private right of action, contends the rule contains unconstitutionally vague requirements that compensation be reasonable, and alleges the manner of adoption of the rule by DOL was arbitrary and capricious.”
“NAFA believes the fiduciary rule will disrupt the distribution and availability of fixed annuities and have a particularly adverse impact on the low and middle income consumers who have come to rely on these valuable retirement savings products,” Anderson added.
Five lawsuits challenging the fiduciary rule remain to be decided.
NAFA is a trade association founded in 1998 that consists of insurance companies, agencies, agents and affiliated persons who provide fixed annuities.
