You would think that a rule requiring financial advisors to put their own interests before your own would be no simple thing.
You would be wrong.
In March, two federal courts in Texas officially struck down the Department of Labor’s (DOL) Retirement Security Rule — the Biden-era regulation that would require you to act as a fiduciary to anyone giving you retirement investment advice.
This means they have to put your financial interests first. Not their commission. Not their bonus. Yours.
The rule never actually took effect. It was challenged by insurance industry trade groups almost immediately after it was finalized in April 2024. Two Texas courts blocked it, the Biden administration appealed, and then the Trump administration rejected the appeal altogether.
Then it got even worse. The DOL didn’t just stop defending the rule — it joined the plaintiffs’ side and asked the court to strike it down.
If this sounds familiar, it should. The Obama administration tried the same thing in 2016 with a similar rule. The Fifth Circuit vacated it in 2018. The Trump administration still refused to defend it.
Four attempts. sixteen years. Zero enforceable security.
What this means for your money right now.
1. Your advisor may not be legally required to hire you in the first place
This is the big one.
Without the Fiduciary Rule, the Standard Returns for Most of the Financial Advice Industry 1975-era testing Five conditions must be met for a person to be considered a fiduciary. This is a narrow definition, and it is easy for consultants to structure their business so that they fall out of it.
This means someone may recommend you roll your entire 401(k) into a higher-fee annuity — and as long as that recommendation is in your best interests, that’s enough.
2. The rollover market is much larger – and now less protected
Here’s why it matters so much. According to LIMRA, Americans are projected to contribute approximately $855 billion to IRAs in 2025. This number is expected to exceed $1 trillion by 2030.
Average rollover for people ages 50 to 74? Over $220,000. This is often the biggest financial move anyone will make, and it’s happening now in an environment where the person advising you may not be required to prioritize your interests.
IRAs hold total assets of approximately $17 trillion. That is not a small market. And the people who fought hardest to eliminate this rule – the insurance and brokerage industry trade groups – have a huge financial stake in keeping things exactly the way they are.
If you’re getting close to a rollover, we’ve included 5 things to do with your 401(k) a week before you retire and hidden 401(k) features you should know about.
3. ‘Regulated best interests’ is not the same as fiduciary
You may have heard that the SEC’s Regulation Best Interest, or Reg BI, already protects you. Not so – at least not in the way you think.
Reg BI applies to broker-dealers recommending securities. This requires them to act in your “best interests,” but this does not constitute an absolute fiduciary duty. And this doesn’t include all types of retirement advice, especially insurance product recommendations like annuities.
Here’s the real problem: The same advisor can operate under different legal standards depending on what they’re recommending and what hat they’re wearing. You are unlikely to know the difference. And no one needs to tell you.
Other differences between “best interest” and fiduciary rules:
- Reg BI applies primarily “at the time the recommendation is made”. A fiduciary relationship often continues.
- Fiduciaries are required to avoid conflicts of interest, while Reg BI insists on disclosing them.
4. The Industry Spent Millions to Overturn This Rule – Ask Yourself Why
This is not a conspiracy. This is public record.
Groups that filed suit to block the fiduciary rule included the American Council of Life Insurers, the National Association of Insurance and Financial Advisors, the Insured Retirement Institute, and others. After the court’s decision, they celebrated publicly.
Their reasoning? Consumers are already well protected by existing state and federal standards and this rule would reduce access to financial advice.
Perhaps. But let me say it another way.
If your doctor, your lawyer, or your CPA has spent years and millions of dollars lobbying for your right not to put your interests first, you will find a new doctor, lawyer, or CPA. Nevertheless, in the world of financial advice, it is considered a reasonable position to take.
5. You can still protect yourself, but now it’s on you
The courts and regulators are not going to save you here. This means that the burden falls entirely on your shoulders. Here’s what to do:
- Ask any financial professional simply: “Are you a fiduciary?” Then get it in writing. Verbal promises mean nothing. If they dodge the question or say they sometimes act as fiduciaries, walk away.
- check them out form adv But SEC website. This will tell you how they are compensated and whether they are registered as investment advisors.
- Look for fee-only advisors. These are professionals who are compensated exclusively by their clients – not through commissions on the products they sell. Organizations such as NAPFA maintain directories of fee-only fiduciary advisors.
- If you want more help vetting an adviser, we’ve explained how to differentiate genuine financial advice from a sales pitch.
- Consider a certified financial planner. CFPs are bound by fiduciary standards. This is not the only certification that matters, but it is a strong signal that the advisor takes his or her responsibility seriously. Also consider what a financial advisor’s credentials really mean for your money.
And if you’re approaching retirement and thinking about moving from a 401(k), slow down. That single decision can involve hundreds of thousands of dollars. Don’t let anyone rush you into this – especially someone who doesn’t legally need your help.
If you want to avoid other costly mistakes, check out “18 Things You Really Shouldn’t Do in Retirement.”
bottom line
This rule has now been struck down twice by two different administrations. The DOL’s regulatory agenda hints that a narrow replacement could emerge in late 2026, but don’t hold your breath. The financial industry has shown that it will fight any version of this rule tooth and nail.
Therefore protect yourself. Ask tough questions. Verify Answer. And never assume that the person sitting across the table is on your side just because they give you a business card that says “Consultant.”
Because right now, that title doesn’t come with the legal obligations that you think about.