Fiduciary Rule Struck Down But Plan Sponsors Not Off the Hook
On March 15, 2018, the 5th Circuit Court vacated the entire DOL fiduciary rule. The decision essentially nullifies the rule, which was designed to require financial professionals to put their clients' needs ahead of their own when advising them on retirement accounts. It was first put in place in 2016, and then subjected to a series of delays.
The court ruled that the Department of Labor (DOL) overreached its authority by placing rules on the investment industry. Prior to this rule, the DOL stayed within the confines of labor, regulating companies.
Shockingly, many in the investment industry opposed the fiduciary rule. It was an insurance company that sued the DOL in the 5th Circuit decision. A quick Google search of other lawsuits against the DOL to stop the fiduciary rule show that many were filed by insurance and annuity companies.
