Fiduciary rule opponents may be set to celebrate as the rule could be on its last legs. The US 5th circuit court will hear the case of major business groups’ challenge against the rule. One may be forgiven for being skeptical of the case’s odds given the string of legal failures in recent months, but a US circuit court judge recently pointed out that Supreme Court judgements have moved things in opponents’ favor. In particular, the long-held Chevron deference, or the guideline that courts should defer to regulatory agency decisions when Congressional language is unclear, has been upended. The Supreme Court has established a “countervailing cannon” to enforce common sense in cases of regulatory over-reach.
FINSUM: This looks like the best shot for the rule to be overturned in many months as it is very easy to cast the DOL’s rule as “regulatory over-reach”. We will keep a close eye on this.