States appeal court ruling in attempt to save Obama-era financial rule

California, New York and Oregon are pulling out all the stops in an effort to save an Obama-era rule requiring retirement advisers to act in the best interest of their clients.

The states, led by California Attorney General Xavier Becerra (D), have asked the U.S. Court of Appeals for the 5th Circuit to reconsider its refusal to let them intervene in a lawsuit business and financial groups have brought challenging the rule.

The states are seeking to become a party in the case so they can petition the full court to review its earlier decision striking down the rule and defend it on appeal. 

{mosads} 

“The federal government is no longer pursuing this appeal,” the states argued in their request filed late Wednesday night. 

“Given that posture, the exceptional importance of the issues, and the grave harm the states will suffer as a result of the panel opinion — billions of dollars in lost retirement income to their residents and tens of millions of dollars in lost tax revenue — the states respectfully request that the Court reconsider its decision.” 

In March, the court sided with the Chamber of Commerce and 21 other groups in ruling the regulation was an arbitrary and capricious exercise of administrative power by the Department of Labor.

If the three-judge panel refuses to reconsider its order denying the states’ request to intervene in the case, the states say they plan to appeal to the full court.

“The Fiduciary Rule is worth fighting for — plain and simple,” Becerra said in a statement.

“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. This is about doing what is right and protecting retirees.”