DOL Will Not Enforce Final Fiduciary Rule After Fifth Circuit Vacates the Rule

The U.S. Court of Appeals for the Fifth Circuit (whose jurisdiction includes Texas, Louisiana, and Mississippi) vacated the entire final Fiduciary Rule that was issued by the DOL in April 2016. The Fifth Circuit held that the definition of ?Ç£fiduciary?Ç¥ in the final Fiduciary Rule conflicts with the plain text of ERISA and the common law definition of fiduciary. The Fifth Circuit further held that the DOL overstepped its authority in applying ERISA?ÇÖs fiduciary standards to individual retirement accounts and that the DOL?ÇÖs interpretations fail the reasonableness test under the standard set out in Chevron U.S.A., Inc. v. NRDC, Inc., 467 U.S. 837 (1984). In response to the Fifth Circuit?ÇÖs decision, the DOL announced that it will not be enforcing the rule at this time. Chamber of Commerce of the USA v. U.S. Dep?ÇÖt of Labor, No. 17-10238 (5th Cir. Mar. 15, 2018).