Source link : https://las-vegas-news.com/5-key-takeaways-from-texas-courts-final-strike-against-dols-fiduciary-rule/
A Familiar Foe Returns to the Grave (Image Credits: Pexels)
Texas — Two federal courts in Texas delivered the final blow last month to the Department of Labor’s 2024 Retirement Security Rule, a regulation aimed at expanding who qualifies as a fiduciary for retirement investment advice.[1][2] The decisions restored a decades-old standard and ended a multiyear legal battle that began under the Biden administration. Retirement savers and financial professionals now face a return to familiar ground, but questions linger about future protections.[3]
A Familiar Foe Returns to the Grave
The Retirement Security Rule echoed a 2016 Department of Labor effort that federal courts struck down as overreach. Finalized in April 2024, it sought to broaden the definition of an investment advice fiduciary under the Employee Retirement Income Security Act, or ERISA.[4] The new version would have classified more advisors — including those offering one-time recommendations on rollovers — as fiduciaries required to prioritize clients’ interests above their own.
Courts in the Eastern and Northern Districts of Texas halted the rule before its September 2024 effective date. Judge Jeremy D. Kernodle in the Eastern District issued a nationwide stay in July 2024, followed by a similar order from the Northern District.[3] The Biden-era Labor Department appealed, but the incoming Trump administration ceased defense in late 2025, paving the way for final vacatur orders on March 12 and March…
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Author : Matthias Binder
Publish date : 2026-04-29 19:26:00
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