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FACC DOL Rule Press Release-Supplemental Brief Motion

FACC at the same time is strongly objecting to DOL’s new rule proposal as inherently incompatible with ERISA as spelled out by the Fifth Circuit decision. “FACC will have no choice but to ask the courts yet again to intervene if the DOL dares to move forward with this proposal which is nothing more than a rehash of the 2016 fiduciary rule and ignores the clear dictates of the Fifth Circuit decision,” said O’Brien. “It is surprising to us that the Department of Labor thinks it can propose such a regulation that ignores all the relevant litigation” continued O’Brien. “The Fifth Circuit was clear that regular salespersons are not fiduciaries and said it was ordinarily inconceivable that one-time rollovers would turn agents into fiduciaries but this proposed rule blows right by those concerns.” O’Brien added, “we feel there is no way this new rule would survive a legal challenge” and expressed hope that other trade groups would join FACC in fighting the proposal in court as necessary.

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