The Obama Labor Department, under the suzerainty of Tom Perez who is now the Progressive-Democratic National Committee Chairman, enacted a rule that allowed individuals to hale into court principals of employer or union retirement plans for the crime of charging commissions for their actions. The rule also redefined “investment advice fiduciaries” to include broker-dealers and financial-insurance agents whose activities are limited to selling financial products.
The 5th Circuit struck the rule as illegal. That’s good news for all of us.
The Trump Labor Department has said it won’t enforce the rule and is working with the SEC on a new one….
The first part of that is good (and to be expected, since it’s unsavory to enforce an illegal rule). However, with respect to the second part, it would be better if the Labor Department just sat down and shut up on this. This matter has nothing to do with Labor or with labor.