Judge Could Issue Partial Block of DOL Rule, Lawyer Says

September 23, 2016 by John Hilton

Kansas judge could throw out the tougher regulation of fixed indexed annuities, while allowing the rest of the controversial fiduciary rule to stand.

Judge Daniel Crabtree heard three-and-a-half hours of testimony Wednesday in the Market Synergy Group vs. Department of Labor lawsuit. MSG is taking a nuanced stand with its request for a preliminary injunction, citing irreparable harm if FIA sales require a Best Interest Contract Exemption.

Under the DOL’s preliminary rule, FIAs remained under the Prohibited Transaction Exemption 84-24. When its final rule was published in April, FIAs surprisingly turned up under the BICE.

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Originally Posted at InsuranceNewsNet on September 23, 2016 by John Hilton.