Brad Campbell Discusses Federal Court Striking Down DOL Fiduciary Rule With Financial Advisoron

Benefits and executive compensation partner Brad Campbell spoke with Financial Advisor to discuss a recent ruling by a federal judge to vacate the Department of Labor’s (DOL) 2024 Retirement Security Rule, which aimed to expand fiduciary obligations for retirement advice.

Campbell shared that the court’s action removes a rule that many industry participants believed was deeply flawed. “I think this is very good news,” Campbell asserted. “The 2024 regulatory package had fundamental flaws that would not only have disrupted the availability of advice in the real world, but also exceeded the Labor Department’s authority to regulate advice to individual retirement accounts.”

Since the rule never went into effect, firms have largely continued operating under the regulatory framework that has governed retirement advice for several years.

Campbell added that many advisory firms already maintain policies and procedures designed to manage conflicts and document rollover advice. “I think the securities industry has had processes in place for quite a few years now that work and are well understood.”

He concluded that, although the DOL may revisit the issue in the future, for now, “people are being protected, whether by the Labor Department, the SEC or state insurance commissioners.”