Mar 26, 2018 | News

DOL Fiduciary Rule Struck Down by 5th Circuit Court

Causing more confusion for brokers, the 5th Circuit court struck down the DOL Fiduciary rule.  Meanwhile, the SEC moves toward providing more clarification.
In a 2-1 decision to vacate the rule, it looks like implementation DOL Fiduciary rule will likely never come to fruition.   However, another option may result in softening the rule with input from the SEC.   The 5th Circuit Court decision may have negligible impact on the SEC because the regulator needs to move forward with its own fiduciary rules regardless of DOL litigation.
According to Rep Ann Wagner (R- MO), a vocal opponent to the DOL Fiduciary Rule, she believes the SEC is the rightful regulator of the rule and must fill that role to protect consumers from bad actors while allowing Americans access to affordable and sound financial advice.
While the DOL Fiduciary Rule may have been seen as a burden to small firms it may have prompted as well as increased tougher self-regulation by the entire industry.