While somewhat irked that it still exists at all, the industry seems to be pleasantly surprised at the recent move by the DOL to delay the full implementation date of the fiduciary rule to July 2019. The long timeline, and corresponding comfort that gave, however, may be in doubt, as a new court challenge may result in the delay getting thrown out. A consortium of consumer advocate groups will launch a legal challenge which questions the DOL’s right to delay the rule. The case will challenge whether the “delay” is really a “stay” of the rule in disguise, and it will question the DOL’s authority to do it in the first place.
FINSUM: Anything opposing the fiduciary rule has never done very well in the courts, so it is probable that this challenge could have legs.