A federal court has dismissed the Department of Labor’s (DOL) appeal concerning its fiduciary-only rule, a regulation that would have limited consumer options for retirement advice. The stay on the rule remains in effect as a result of a lawsuit brought by the National Association of Insurance and Financial Advisors (NAIFA), several Texas-based NAIFA chapters, the American Council of Life Insurers (ACLI), and other parties.
The DOL’s decision to withdraw its appeal led to the court’s action, leaving the current stay in place. This legal challenge follows NAIFA’s earlier involvement in defeating a similar rule in 2016.
In a joint statement, NAIFA, ACLI, and their co-plaintiffs said: “The DOL’s fiduciary-only regulation resurrects a failed 2016 rule that prevented millions of consumers from accessing much-needed retirement financial guidance. Allowing the stay of the effective date to remain in place provides retirement savers with continued relief from these harmful consequences as the court considers the substantial legal issues we have raised regarding this ill-advised regulation.”
While some procedural steps remain before the matter is fully resolved, NAIFA describes this development as an important advocacy win for both its members and consumers seeking retirement services. The organization credited its efforts and those of NAIFA-Texas, NAIFA-Fort Worth, NAIFA-Dallas, and NAIFA-Pineywoods of East Texas for making the lawsuit possible.
Looking ahead, if the DOL proposes a new rule in 2026, NAIFA states it will work with federal officials to ensure any future proposal maintains consumer access to financial professionals and retirement planning services.
