DOL Drops its Defense of Biden-Era Investment Advice Fiduciary Standard

The Department of Labor (DOL) has officially dropped its efforts to defend its own Biden-era Retirement Security Rule, or fiduciary rule—by deciding to drop its appeal of recent court decisions challenging that rule. Via the DOL regulatory agenda, it has also announced its intention to issue a revised fiduciary standard around May of 2026. For the time being, the historically-applicable 1975 five-part standard applies--as well as the portions of the PTE 2020-02 that were not struck down. For fiduciary investment advice standards to apply under the 1975 standard, a person who is not otherwise a fiduciary must (1) render advice as to the value of securities or other property, or make recommendations as to the advisability of investing in, purchasing, or selling securities or other property (2) on a regular basis (3) pursuant to a mutual agreement, arrangement, or understanding with the plan, plan fiduciary or IRA owner that (4) the advice will serve as a primary basis for investment decisions with respect to plan or IRA assets, and that (5) the advice will be individualized based on the particular needs of the plan or IRA. For more information on the investment advice fiduciary standard, visit Tax Facts Online. Read More: Link to Q3986. Note: Q is updated.