Recent News About Thrivent Financial
The U.S. Department of Labor and its new secretary, R. Alexander Acosta, last week notified a Minnesota federal court that it submitted to the Office of Management and Budget, or OMB, proposed amendments to three exemptions. The proposed amendments include an “extension of transition period and delay of applicability dates” from Jan. 1, 2018 to July 1, 2019.
A group of associations have filed an appeal in the U.S. Court of Appeals for the Fifth Circuit and a Kansas-based company has filed an appeal in the U.S. Court of Appeals for the Tenth Circuit over the controversial new rule. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the “best interest” of the savers and disclose conflicts of interest.
Minneapolis-based Thrivent Financial for Lutherans argues the new rule, which, among other things, redefines the term fiduciaries, would subject it to penalties under federal law and would force it to agree contractually with its customers that they could participate in class actions against the organization.