On July 25, 2024, a federal court in the Eastern District of Texas issued a stay barring the enforcement of the DOL fiduciary-only rule (and amendments to PTE 84-24) while the case in FACC v. DOL is pending. An appeal of the stay to the 5th Circuit is likely.  

Meanwhile, NAIFA’s challenge to the fiduciary-only rule, brought with ACLI and other industry groups, is under review in the Northern District of Texas, where we seek a preliminary injunction and stay against enforcement of the fiduciary-only rule and amendments to PTE 84-24 and 2020-02.

Update: A Federal Court has granted a stay in the case brought by NAIFA, ACLI, and others.

The court in the FACC case ruled that plaintiffs are likely to succeed on the merits because the fiduciary-only rule conflicts with ERISA, and with the 5th Circuit’s decision in Chamber, by impermissibly expanding the definition of fiduciary and exceeding the DOL’s authority.

The court in the FACC case found the following:

• The fiduciary-only rule improperly treats one-time rollover recommendations as fiduciary relationships, by improperly redefining fiduciary relationships to include non-trust-and-confidence relationships.
• The fiduciary-only rule improperly (i) eliminates the requirements that fiduciary advice be given on a regular basis, pursuant to mutual agreement, and as primary basis for investment decisions, (ii) ignores the requirement that fiduciary advice be given for a fee, and (iii) ignores the distinction between the DOL’s authority under ERISA Titles I and II.
• The amendments to PTE 84-24 are arbitrary and capricious by imposing fiduciary duty requirements and liabilities on all agents and brokers who interact with retirement investors.
• The FACC plaintiffs demonstrated a substantial threat of irreparable harm if the fiduciary-only rule goes into effect, including compliance burdens and potential liability.

The court gave its stay nationwide effect, not limited to the parties in the FACC case, because the fiduciary-only rule affects all similarly situated financial professionals; because investment rules should be uniform; and because the rule impacts various parts of the financial services industry.

"NAIFA is very pleased that a federal court has halted enforcement of the Department of Labor's fiduciary-only rule," said NAIFA CEO Kevin Mayeux, CAE. "While we await a decision in the case NAIFA filed with NAIFA Chapters, ACLI, and other industry groups in opposition to the DOL rule, this is an important step forward towards protecting the businesses of NAIFA members and consumers who rely on them for financial products and services. The decision means that the DOL's rule will not go into effect September 24, and the courts will have time to fully consider the merits of our lawsuit. We are encouraged by this decision and are confident that we have put forward a strong argument to have the DOL's rule vacated in its entirety."

The NAIFA chapters that are parties to our lawsuit are NAIFA-Texas, NAIFA-Dallas, NAIFA-Fort Worth, and NAIFA-Pineywoods of East Texas. NAIFA will keep you posted on important developments in these cases.

Join your friends and colleagues at the Arizona Biltmore, September 19-21, for NAIFA's combined signature events, Apex and the National Leadership Conference. You can see who will be there on our Apex Who's Coming? page. Add your name to the list by registering today!

Members from Texas registered to attend include: 

Lena Allouche, NAIFA Houston President
Erni Davis, NAIFA Employee
Renae Davies, NAIFA-Texas Executive Director
Rick Demko, NAIFA-Texas President-Elect
Karen Easterling, NAIFA Austin Board Member
Susan Faykus, NAIFA Austin President
Keith Forster, San Antonio Member
Hollie Gandy Donohue, NAIFA Amarillo Area Leadership Team Member
Robin Johnston, Austin Member
Chuck Laubach, San Antonio Member
Douglas Massey, NAIFA National President-Elect
Shane Minks, NAIFA Houston Board Member
Michael Steadman, San Antonio Member
Jason Talley, NAIFA-Texas Industry Relations Task Force Chair & LILI Chair
James Thompson, NAIFA-Texas Board Member
Joey Ussery, Houston Member
John W Wheeler Jr., NAIFA-Texas Board Member

NAIFA's Apex and National Leadership Conference has what you need to take your business to the next level and boost your bottom line. 

• Breakout workshops on the hottest topics in insurance and financial services.
  • Mastering AI to bolster your insurance or financial business. 
  • Discovering knockout networking techniques.
  • Exploring the digitalization of life insurance.
  • Using CRMs, SOPs, social media, and other tools to build a high-performing agency.
  • Providing business owner clients with advanced-planning solutions.
• Keynote speakers to entertain, education, and inspire.
  • Morris Morrison
  • Marques Ogden
  • Amy Florian
  • David McKnight
  • Nathan Gonzales
• Ample networking with the best professionals in the industry at a world-class resort facility.

NAIFA-Texas is proud to announce that John M. Ruckel, LUTCF, a Financial Professional with MassMutual and owner of Ruckel Insurance and Financial Group in Nacogdoches, Texas, is the 2024 recipient of NAIFA’s Terry Headley Lifetime Defender Award. John will receive the award at the celebration on September 21. Learn more about this prestigious honor here: NAIFA-Texas Member John Ruckel to Receive NAIFA Terry Headley Award.

NAIFA's room block and conference rate at the Arizona Biltmore is reserved through August 12, so act now to avoid missing out.

NAIFA and NAIFA-Texas are proud to announce that John M. Ruckel, LUTCF, a Financial Professional with MassMutual and owner of Ruckel Insurance and Financial Group in Nacogdoches, Texas, is the 2024 recipient of NAIFA’s Terry Headley Lifetime Defender Award.

Ruckel, a loyal member since 1969, was NAIFA’s National President in 1999-2000. He had previously served on NAIFA’s National Board of Trustees and as NAIFA-Texas’s President in 1987-1988. He was also President of NAIFA-Pineywoods of East Texas and a member of the LIFE Foundation (Life Happens) Board of Directors.