On Thursday, July 25th, just two days after FACC presented its Oral Argument, Judge Kernodle, granted FACC’s motion.
EXCERPT
The Court grants Plaintiffs’ motion. As explained below, Plaintiffs are likely to succeed on the merits of their claim because the 2024 Fiduciary Rule conflicts with ERISA in several ways, including by treating as fiduciaries those who engage in onetime recommendations to roll over assets from an ERISA plan to an IRA. DOL’s related amendments to Prohibited Transaction Exemption 84-24 are also unreasonable and arbitrary and capricious.
For its part, DOL attempts to reconcile the Rule to Chamber but fails. Ultimately, DOL contends that Chamber is wrong and unduly limits the agency’s authority. But that is an argument for the en banc Fifth Circuit or the Supreme Court. The balance of the factors necessary to issue a stay, moreover, weigh in Plaintiffs’ favor here.
Accordingly, the Court ORDERS that the effective date of the 2024 Fiduciary Rule and amended PTE 84-24 is STAYED until further order of the Court.