The Proposed DOL Fiduciary Rule – Update

The Proposed DOL Fiduciary Rule – Update

By Mark Ries

On June 21, the 5th Circuit Court of Appeals issued a mandate vacating the US Dept. of Labor’s proposed ERISA fiduciary rule effectively ending any speculation about its future. With the proposed rule changes no longer on the table, the DOL’s previous regulation dating back to 1975 will again be applicable in determining whether a person communicating with or offering services to an ERISA plan or an individual retirement account is offering fiduciary advice and, as such, should be held to that standard.

Implications for plan participants;

The most meaningful impact this ruling will have from a plan participants perspective is that any recommendations given on consolidating qualified accounts and rollovers will no longer generally be considered to be fiduciary investment advice.

In our role as a Registered Investment Advisor and as advisor and co-fiduciary for qualified retirement plans, Carroll Consultant Advisors, Ltd. is considered a fiduciary and, as such, is held to the highest standard requiring us to always act in the best interest of, not only plan sponsors but also plan participants and individual advisory clients as well.

Founded in the 1950s, Carroll Consultants, Ltd. provides investment advisory, retirement plan consulting and administration services to clients throughout the country. For further information about this article, please contact Marcie Carroll at or (610) 225-1210.