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DOL Fiduciary News: February 27, 2017

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U.S. Chamber of Commerce appeals ruling upholding fiduciary rule; February 24, 2017

The retirement industry trade group that lost its court case in Texas against the Department of Labor’s fiduciary rule has filed an appeal today in the U.S. Court of Appeals for the Fifth Circuit.

The U.S. Chamber of Commerce and its co-plaintiffs appealed the ruling of Chief Judge Barbara Lynn of the Northern District of Texas that upheld the fiduciary rule. The group had challenged the DOL’s authority on eight counts, all of which Judge Lynn rejected in her 81-page ruling.

OMB Ponders Legal Implications of DOL Rule Delay: Sources

InsuranceNewsNet; February 24, 2017

The Office of Management and Budget is taking a more measured approach to reviewing the Department of Labor's request for a delay of its controversial fiduciary rule.

The delay was expected to be finalized this week by OMB, but several sources said the office is concerned that pro-rule groups will sue if the rule delay is not thoroughly vetted.

"It would not be a surprise at all if that’s what follows," Knut Rostad said of the counter-lawsuit potential. Rostad is co-founder of the pro-rule Institute for The Fiduciary Standard.

Shrinking Bonuses Slow the Revolving Door of Wall Street Brokers

Bloomberg; February 27, 2017, 5:00 AM EST

After months of secretive planning, seven teams of financial advisers had new business cards and client lists in hand, poised to dump their employers and join Morgan Stanley with more than $500 million of assets in tow.

But the wealth managers woke on Oct. 28 to find the ground beneath them had shifted. Morgan Stanley had pulled the advisers’ lucrative recruitment packages overnight after U.S. regulators clarified new rules to reduce conflicts of interest in the industry, according to people with knowledge of the situation. The teams were thrown into limbo.

Commission rates on fixed annuities expected to settle around 3% under the fiduciary rule

Bank Investment Consultant; February 23 2017, 3:51pm EST

Banks and credit unions are likely to set commission rates on fixed-rate annuities in the neighborhood of 3% once the fiduciary rule kicks in, according to a new report from Kehrer Bielan & Consulting.

The report surveyed 18 bank and third-party broker dealers to ascertain how financial institutions plan to adjust their product and pricing menus to comply with the new regulation.

Not all were unanimous in their expectations for future fixed-rate annuity commissions, with responses ranging from 2.5% to 5%. Most responses, however, hovered between 3% and 3.4%.

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