In response to the news that the U.S. Department of Labor’s fiduciary rule was struck down, in a 2-1 decision, by two judges on the 5^th Circuit Court of Appeals, Christine Owens, executive director of the National Employment Law Project, issued the following statement: 

“Today, the Fifth Circuit Court of Appeals issued a legally flawed decision vacating a 2016 Labor Department rule that protected retirement savers by ensuring that their financial advisers put their interests first.

“In addition to misapplying the law, the opinion conflicted with the decisions of every other court that has considered the rule; discounted the dramatic changes in the retirement landscape over the last 40 years; and, worst of all, potentially costs retirement savers as much as $17 billion annually.

“The court’s faulty reasoning also threatens the Labor Department’s very ability to protect retirement investors now and in the future. We urge the Justice Department to appeal this decision, to put retirement savers’ interests first, and to defend the federal government’s ability to regulate in this important area.”

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