In a victory for the Department of Labor, a federal judge has rejected an attempt by an insurance trade group to strike down its new fiduciary rule for retirement advice, Investment News reported on Friday. In the first court decision involving a legal challenge to the DOL rule, District Judge Randolph Moss turned back the challenge brought by the National Association for Fixed Annuities. In addition to seeking a preliminary injunction to delay the implementation date, NAFA also was asking the court to vacate and set aside the fiduciary rule and its associated exemptions. NAFA had challenged the new rules “on numerous grounds,” including the new definition of “fiduciary” and a claim that the DOL had acted beyond its authority. NAFA further contended that “the new rules will have catastrophic consequences for the fixed indexed annuities industry.”
