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FACC et al. vs. DOL – DOL Response to FACC Motion for Preliminary Injunction 6-14-2024

Below is the response from DOL, as a defendant, opposing the motion from FACC for a preliminary injunction that would suspend enforcement of the fiduciary rule. Here is an excerpt from the defendants’ filing:

“Plaintiffs—insurance professionals and a trade association representing insurance professionals—seek a preliminary injunction and stay of the effective date of the Rule. Their arguments are largely grounded in policy concerns about the insurance industry that cannot override the clear text of the statute passed by Congress. Contrary to Plaintiffs’ wishful thinking, ERISA does not inherently exclude investment advice about plan assets when insurance agents are involved. Instead, ERISA adopted a fiduciary standard focused on function. Because the Department’s amended test reasonably addresses the totality of the circumstances, Plaintiffs have failed to muster convincing arguments that the Retirement Security Rule is unlawful.”

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