Court Kills DOL Fiduciary Rule

On March 17, 2026, the U.S. District Court for the Northern District of Texas issued a final order vacating (killing) the Department of Labor’s (DOL’s) final 2024 fiduciary rule. Shortly thereafter, DOL’s Employee Benefits Security Administration (EBSA) signaled it would not appeal the decision, and restored the 1975 five-part test with which fiduciaries must comply that determines when advisors are indeed acting in the best interests of their clients.

In its March 18 press release in response to the court’s ruling, EBSA said it “has no current plans to engage in notice and comment rulemaking in this regard and remains focused on its core mission, redoubling its efforts to make employer-based U.S. retirement plans the strongest and most innovative in the world. The department will consider whether any additional guidance, including transitional or non-enforcement relief, is appropriate.”

EBSA’s head, Daniel Aronowitz, said “The challenged regulation wrongly sought to impose ERISA fiduciary status on securities brokers and insurance agents when there was not a relationship of trust and confidence. The Securities and Exchange Commission and state regulators regulate the activities of securities brokers and insurance agents and that will continue.”

The five-part test includes:

• Advice: The advisor provides advice or makes recommendations regarding investing in, purchasing, or selling securities or other property.
• Regular Basis: The advice is provided on a regular basis.
• Mutual Agreement: The advice is provided pursuant to a mutual agreement, arrangement, or understanding with the plan, plan fiduciary, or IRA owner.
• Primary Basis: The advice serves as a primary basis for investment decisions with respect to plan or IRA assets.
• Individualized: The advice is tailored to the specific needs of the investor.

NAIFA and its chapters in Texas played a key role in this victory. Not only did NAIFA testify against the most recent rule and lobby extensively against its promulgation, it also provided plaintiffs in the lawsuits challenging it. The result is a big win for NAIFA and its members, and for allies in the financial services industry.

Prospects: It is unlikely that there will be any significant regulatory activity on the fiduciary rule for the next two to three years. However, if and when Democrats regain the White House and/or control of the House, Senate or both, the issue could arise again. NAIFA will continue to keep a sharp eye on the issue for the foreseeable future.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org