DOL fiduciary rules muddy rollovers
The Biden‑era fiduciary rule was struck down and the Department of Labor’s five‑part test is back in play, leaving rollover advice and documentation in a grey area that firms must navigate carefully. The decision increases the need for clearer disclosures and tighter record‑keeping around IRA rollovers and retirement recommendations. (pionline.com)
Final judgments entered in the Eastern District of Texas on March 12, 2026, and in the Northern District of Texas on March 17, 2026, vacating the DOL’s April 25, 2024 “Retirement Security Rule,” and the consolidated appeal was dismissed by the Fifth Circuit on Nov. 28, 2025. (federalregister.gov (federalregister.gov); dol.gov (dol.gov)) The Department of Labor’s March 18, 2026 press release republished the 1975 five‑part test and republished the operative text of Prohibited Transaction Exemption 2020‑02 while stating the PTE 2020‑02 preamble is “no longer reliable.” (dol.gov (dol.gov); federalregister.gov (federalregister.gov)) The Federal Register notice sets an effective date of April 20, 2026 for republishing PTE 2020‑02’s original December 18, 2020 operative text, thereby restoring the narrower statutory-language framework for ERISA fiduciary status. (federalregister.gov (federalregister.gov)) Legal analyses and compliance advisories interpret the restored five‑part test to mean a standalone, one‑time rollover recommendation generally will not satisfy the five prongs to create ERISA fiduciary status, but rollovers tied to an existing advisory relationship or expected ongoing advice remain likely to trigger fiduciary duties. (leGayelaw.com (legayelaw.com); ria-compliance-consultants.com (ria-compliance-consultants.com)) Industry groups that litigated and intervened in the cases — including SIFMA, FSI and the American Council of Life Insurers — issued statements between March 17–19, 2026 praising the vacatur as a restoration of statutory limits and a protection of adviser business models. (sifma.org (sifma.org); acli.com (acli.com)) The DOL said it has no current plans to reinitiate notice‑and‑comment rulemaking immediately but indicated it may consider additional guidance or transitional relief, while industry trackers note the administration’s Spring 2025 regulatory agenda listed a potential target of May 2026 for future action on fiduciary definition issues. (dol.gov (dol.gov); napa-net.org (napa-net.org))
