401(k) Advice Rule That Wall Street Opposes Paused by Judge (2)

A US Labor Department rule that classifies more retirement advice providers as fiduciaries has been temporarily blocked by a Texas federal judge, granting a request by an insurance industry trade association.

In granting the insurers’ request, the judge said they were likely to succeed in their effort to overturn the 2024 fiduciary rule because it conflicts with the Employee Retirement Income Security Act (ERISA) by redefining “investment advice fiduciary” to include non-trust-and-confidence relationships.

The rule treats as fiduciaries those who engage in one-time recommendations to roll over assets from an ERISA plan to an investment retirement account, Judge Jeremy Kernodle ...