Court Ruling Won't Stop Best-Interest Advice
An appellate court's ruling to strike down the Department of Labor's fiduciary rule doesn't change our view that in the long-run advisors are moving to a fiduciary standard of care.
A panel of the 5th U.S. Circuit Court of Appeals struck down the Department of Labor's fiduciary rule on Thursday.
While it is certainly true that this decision adds a bit more uncertainty to an already muddled situation for the DOL rule, it is important to keep the future of the rule and the future of best-interest advice separate. The rule had been delayed already and the agency was already likely to revise it. It must now also decide whether to appeal to the Supreme Court, ask the full 5th Circuit to reconsider, or revise the rule to focus on areas where it has clearer legal authority and ongoing concerns, such as the advice being given to small plans.