Department of Justice Says Class-Action Provision of Fiduciary Rule May Be "Mooted"

The Department of Justice is apparently looking to remove the class-action litigation provision from the Department of Labor’s fiduciary rule.

Investment News reports in a Aug. 23 letter to a Minnesota judge presiding over a lawsuit against the fiduciary rule filed by Thrivent Financial for Lutherans, the Department of Justice wrote that the class-action provision “will likely be mooted in the near future.”

The rule’s second phase of implementation is scheduled to begin Jan. 1, but as we recently reported, the Labor Department submitted a proposal to the Office of Management and Budget requesting an 18-month delay.