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California urges appeals court to reconsider decision to strike down fiduciary rule

LEGAL NEWSLINE

Saturday, November 23, 2024

California urges appeals court to reconsider decision to strike down fiduciary rule

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SACRAMENTO, Calif. (Legal Newsline) — California Attorney General Xavier Becerra announced May 17 that he has joined the attorneys general of New York and Oregon in urging the Fifth Circuit Court of Appeals to reconsider its decision to deny the states’ motion to intervene in a case regarding Obama-era regulations for financial advisers.

The fiduciary rule mandates that professionals giving investment advice must put the interests of their clients above their own. Recently, the Fifth Circuit Court of Appeals struck down the rule on a 2-1 vote. Becerra and the attorneys general filed a motion to intervene before the panel voted but the motion was denied. Becerra now asks that the panel reconsider its decision. He believes vacating the rule will harm millions of consumers because they will lack protection from financial advisers.

“The fiduciary rule is worth fighting for – plain and simple. American families saving their hard-earned money for retirement deserve to know that the investment advice they receive is unbiased and in their best interest,” Becerra said in a statement. “This is about doing what is right and protecting retirees. We hope to be given the chance to defend the fiduciary rule in court.”


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