DOL fiduciary rule tossed

The Department of Labor formally removed the 2024 “Retirement Security Rule” from the Code of Federal Regulations and said it restored the pre-1975 five‑part test in a March 18, 2026 agency release. (dol.gov)) Final judgments vacating the 2024 rule were entered by federal judges in the Northern and Eastern Districts of Texas, a development the DOL cited when implementing the court orders. (dol.gov)) The Federal Register notice republishes the operative text of Prohibited Transaction Exemption 2020‑02 as originally issued on December 18, 2020, and records that the 2024 amendments and portions of the 2024 preamble were vacated, with the Federal Register action effective April 20, 2026. (federalregister.gov)) Litigation that produced the vacaturs included suits filed by the Federation of Americans for Consumer Choice in the Eastern District of Texas and by the American Council of Life Insurers in the Northern District of Texas. (federalregister.gov)) Assistant Secretary for Employee Benefits Security Daniel Aronowitz characterized the 2024 regulation as an attempt to impose ERISA fiduciary status on securities brokers and insurance agents where a “relationship of trust and confidence” did not exist. (dol.gov)) Legal and compliance analyses emphasize that PTE 2020‑02 remains in force and that firms relying on it must still follow DOL conditions for rollover recommendations — including documented best‑interest reasons, written disclosures of conflicts, compliance with the DOL’s impartial conduct standards, and annual review procedures. (natlawreview.com)) Industry trade groups including SIFMA and the Financial Services Institute publicly praised the court orders as restoring longstanding standards and preserving existing broker‑dealer and insurance distribution models. (sifma.org))