DOL Removes Fiduciary Rule From Code of Federal Regulations

The U.S. Department of Labor’s Employee Benefits Security Administration has removed the Biden-era 2024 final rule, “Retirement Security Rule: Definition of an Investment Advice Fiduciary,” from the Code of Federal Regulations, responding to final judgments entered in the Northern and Eastern Districts of Texas vacating the rule.  

DOL has issued a short regulatory release and press release that reinstates the five-part test and clarifies its view that the entire preamble of PTE 2020-02 is effectively vacated, including the DOL’s 2020 interpretation regarding rollover advice. Assistant Secretary of Labor for Employee Benefits Security, Daniel Aronowitz commented, “The challenged regulations wrongly sought to impose ERISA fiduciary status on securities brokers and insurance agents when there was not a relationship of trust and confidence.”

The DOL has indicated it has no current plans to engage in notice and comments rulemaking.