Trump Labor Department ends defense of investment advice fiduciary rule
On November 24, 2025, in an unopposed motion to dismiss, the government dismissed its appeals in two cases in the United States Court of Appeals for the Fifth Circuit.
The filing ended a long-running legal battle that began shortly after the (most current) fiduciary rule - which would have expanded protections for retirement rollovers - was finalized in 2024.
By way of background: The Department of Labor (DOL) attempted on several occasions to update its rules governing the provision of investment advice to participants
in employer-based retirement plans and owners of individual retirement accounts. After its 2010 proposal was withdrawn, the DOL adopted a package of rule changes in 2016.
Several lawsuits were brought to challenge it and in 2018, the 5th Circuit Court of Appeals vacated that rule in its entirety.
The two plaintiffs were the Federation of Americans for Choice, Inc., and the American Council of Life Insurers. The Financial Services Institute joined them as an intervenor.
Other opponents included the National Association of Insurance and Financial Advisors (NAIFA) and the Insured Retirement Institute, formerly known as the National Association
of Variable Annuities (NAVA). The name change occurred in 2009 when the organization rebranded to reflect its new, broader mission beyond just variable annuities.
Multiple groups sent amicus briefs to the Fifth Circuit in the days leading up to the government's move to dismiss.
The Department of Labor (DOL) attempted on several occasions to update its rules governing the provision of investment advice to participants in employer-based retirement plans and owners of individual retirement accounts.
Earlier this year, a coalition of financial planning organizations urged the Labor Department to keep up the fight for regulations supporting clients' best interest. They included the Financial Planning Association, XY Planning Network, and the CFP Board. A spokesperson for CFP Board stated: "It's well past time for federal regulation that aligns retirement investors' expectations with the protections they deserve."