November 07, 2018 Top Story

Decision Vacating DOL’s Fiduciary Rule Creates Circuit Split

Appellate courts divide over whether the Department of Labor exceeded power to regulate investment advisors

By Martha L. Kohlstrand

The Department of Labor’s Fiduciary Rule regulating investment advisors is no more, following the mandate of a divided federal appellate court vacating the rule.

The U.S. Court of Appeals considered whether the Dept. of Labor exceeded its authority when dealing with IRAs

The U.S. Court of Appeals considered whether the Dept. of Labor exceeded its authority when dealing with IRAs

iStockphoto by Getty Images

The decision in Chamber of Commerce of the United States of America, et al. v. United States Department of Labor, et al. creates a circuit split. With no final resolution of the Fiduciary Rule’s validity on the horizon, ABA Section of Litigation leaders advise that continued compliance is the safest path through the uncertainty.

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