Obama-Era Fiduciary Rule Vacated by the Fifth Circuit

The Labor Department’s fiduciary rule was vacated in its entirety March 15 by a federal appeals court in Louisiana. It’s a win for the U.S. Chamber of Commerce and other business groups that have fought to defeat the rule.

The DOL’s action in establishing the fiduciary rule was arbitrary, capricious, not in accordance with the law, and in excess of its statutory authority and limitations, the U.S. Court of the Appeals for the Fifth Circuit held in a 2-1 decision.

The decision comes two days after the Tenth Circuit upheld the Obama-era rule that regulates the financial advice given to ...