Earlier this year, the Department of Labor issued a rule that broadened the scope of circumstances when investment advisors were deemed to be acting in fiduciary roles with respect to workers’ retirement investments, and thus required to provide non-conflicted, honest, and loyal advice in the investor’s best interest. As they did with an Obama-era rule, some investment advisors didn’t like these requirements and sued in the Northern District of Texas. Yesterday, a district judge sided against retirement investors and with the advisors, finding the case largely governed by a Fifth Circuit decision invalidating the earlier rule, and staying the rule.
