Signaling the latest chapter in the ongoing saga of the Department of Labor’s “fiduciary rule”—which requires that retirement advisers (e.g., broker-dealers, investment advisers, and insurance agents) act first and foremost in their clients’ best interests—the U.S. Court of Appeals for the Fifth Circuit has ruled in favor of plaintiffs who challenged its legality.
“The court has ruled on the side of America’s retirement savers, preserving access to affordable financial advice. Our organizations have long supported the development of a best interest standard of care, and the Securities and Exchange Commission should now take the lead on a clear, consistent, and workable standard that does not limit choice for investors,” plaintiffs—including The U.S. Chamber of Commerce, Financial Services Institute, Financial Services Roundtable, Insured Retirement Institute, and Securities Industry and Financial Markets Association—wrote in a joint statement.
