Fifth Circuit Vacates DOL Fiduciary Rule

On June 21, 2018, the U.S. Fifth Circuit Court of Appeals vacated the U.S. Department of Labor’s (the “DOL”) fiduciary rule.  The rule would have made an advisor to an employee benefit plan or IRA an ERISA fiduciary if it renders most “investment advice” for compensation.  That brings at least for now an end to years of development of the new rule, and leaves the old five-part test in place, which requires that an adviser is only a fiduciary if the advice is the primary basis for investment decisions and is individualized for the ERISA client based on its needs.