Biden-era fiduciary rule struck down — but questions linger on rollover advice

Partner David Kaleda is quoted in Pensions & Investments on the Department of Labor’s decision to reinstate the long standing five part test for fiduciary investment advice following federal court rulings invalidating the Biden era Retirement Security Rule. In the article, David notes that uncertainty remains around how rollover advice will be treated, particularly after the DOL withdrew the preamble to its 2020 guidance without reinstating prior advisory opinions addressing rollovers. He said additional clarity would be helpful on how the current framework under ERISA and the Internal Revenue Code should be coordinated with other regulatory regimes, including the SEC’s Regulation Best Interest and state annuity suitability rules. David also cautioned that continued regulatory shifts across administrations create ongoing compliance challenges for firms advising retirement investors.

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