A federal appeals court voided the Department of Labor’s fiduciary rule Thursday, a rule CUNA believes would have created additional compliance burdens for credit unions. The Fifth Circuit Court of Appeals ruled 2-1 that the rule was an arbitrary exercise of administrative power.
The rule would expand who is considered a “fiduciary” of an employee benefit plan. The DOL announced an 18-month delay in implementation of the rule in November.
While the final rule has some CUNA-requested improvements, CUNA is still concerned CUNA expressed several concerns about compliance challenges with the rule, and supports additional research efforts into whether the rule may limit choices for moderate and low-income borrowers.