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Hispanic Leadership Fund Files Amicus Brief 6-3-24

The Hispanic Leadership Fund (“HLF”) has a strong interest in this case. DOL’s latest rule redefining who is an investment advice fiduciary (“2024 Fiduciary Rule”) is effectively the same as the very harmful 2016 Fiduciary Rule that was invalidated in a 2018 decision by the United States Court of Appeals for the Fifth Circuit (“Fifth Circuit”). The HLF Fiduciary Study found that resurrecting the 2016 Fiduciary Rule—which is what the 2024 Fiduciary Rule does—would: 1) reduce the accumulated retirement savings of 2.7 million individuals with incomes below $100,000 by approximately $140 billion over 10 years; and 2) contribute to a roughly 20 percent increase in the wealth gap for Black and Hispanic Americans, when looking at accumulated individual retirement arrangement (“IRA”) savings alone. And based on data from the 2016 Fiduciary Rule, without a stay of the effective date, many of the adverse effects of the 2024 Fiduciary Rule will take place before the September 23, 2024 effective date of the 2024 Fiduciary Rule. Thus, HLF supports the plaintiffs’ motion for a stay of the effective date of the 2024 Fiduciary Rule and for a preliminary injunction enjoining its enforcement pending a final judgment in this case.

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