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With the DOL Fiduciary Rule Vacated, FSI Focusing on SEC Uniform Fiduciary Standard

Financial Services Institute / FSI Advocacy Priorities / With the DOL Fiduciary Rule Vacated, FSI Focusing on SEC Uniform Fiduciary Standard

Current Landscape: On March 15, 2018, FSI and our coalition of likeminded trade associations won our lawsuit against the Department of Labor’s (DOL) fiduciary rule, when the 5th Circuit Court of Appeals issued its decision in our favor and completely vacated the rule nationwide. Click here to read the full decision. The rule will officially end May 7 unless the administration decides to appeal the ruling.

In our lawsuit, filed on June 1, 2016, we challenged the rule because of our belief that it would push the cost of retirement advice and planning services out of the reach of Main Street investors. This makes the court’s decision historic for both our members and the clients they serve who depend on their holistic advice to prepare for a dignified retirement, education their children and care for aging parents. 

Future of Fiduciary: While our victory is certainly good news, our work is not over. Additional appeals are possible and investors still face confusion and risk because not all financial advisors are regulated in the same way or subject to the same level of oversight.

We have fully supported an SEC-created uniform fiduciary standard since before Dodd-Frank become law. We have met numerous times with the leadership of the SEC in an effort to constructively engage with them in the creation of that standard. Those efforts will continue and we will not stop until the SEC creates a uniform fiduciary standard that protects investors and allows financial advisors to thrive – working with clients in the way clients wish to work with them.

Deep Dive: If you wish go deeper into what this ruling means, click here to read the opinion of our lead counsel, Eugene Scalia.