On March 15th, the Fifth Circuit Court of Appeals vacated the Department of Labor’s (DOL) Fiduciary Rule, holding that the DOL surpassed its authority under the Employee Retirement Income Security Act. The Fiduciary Rule, which was partially implemented in June 2017, requires investment advisers providing covered advice to operate in the best interests of their clients’ and their retirement accounts. The DOL has yet to make a public statement but could appeal moving forward.
WHAT DOES THIS MEAN FOR ME?
The future of the Fiduciary Rule is uncertain. Nevertheless, Jay Clayton issued a statement on Monday to announce that the SEC is working toward developing its own Fiduciary Rule, which will not be tampered by the Fifth Circuit’s decision to vacate the DOL Fiduciary Rule. As always, Fairview will continue to monitor developments with the Fiduciary Rule and any relevant SEC updates.