A legal challenge to the fiduciary rule’s anti-arbitration provision will “likely be mooted in the near future,” the Department of Labor told a federal district court (Thrivent Fin. for Lutherans v. Acosta, D. Minn., No. 0:16-cv-03289-SRN-DTS, letter to judge filed 8/23/17).
The statement is the latest indication that the department may be working to undo portions of the Obama-era rule, including the anti-arbitration provision, which is aimed at making it easier for investors to bring class actions against financial advisers. The DOL announced in July that it would no longer defend this provision in court. On Aug. 23, ...