Fifth Circuit Opinion Vacates DOL Fiduciary Rule

April 17, 2018

The U.S. Court of Appeals for the Fifth Circuit on March 15, 2018 issued an opinion (Opinion) vacating the Department of Labor (DOL) fiduciary rule and related applicable exemptions. The DOL had promulgated the rule and exemptions (collectively, Rule) in order to expand the definition of “fiduciary” under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986, while including some provisions to make the resulting regime more workable. For a more detailed explanation of the Opinion, including procedural implications and background of the Rule, please refer to the following Dechert OnPoint.

Several implications of the Opinion are particularly significant for the financial services industry, especially as financial services firms await further clarity from regulators on fiduciary (including “best interest”) standards.

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