A Texas federal court grants stay on fiduciary rule

A U.S. District Court in Texas granted a stay on the Department of Labor’s Retirement Security Rule, ruling in favor of the plaintiff seeking to overturn the rule. The plaintiffs argue that the rule conflicts with the Employee Retirement Income Security Act (ERISA). Federal District Judge Jeremy Kernodle granted the stay while the courts weigh the law’s merits.

“Plaintiffs are likely to succeed on the merits of their claim because the 2024 fiduciary rule conflicts with ERISA in several ways, including by treating as fiduciaries those who engage in onetime recommendations to roll over assets from an ERISA plan to an IRA,” Judge Kernodle ruled.

See the Court document here.