Content provided by Mike Forker, Chief Compliance Officer

Late last week, the DOL fiduciary rule was addressed by the courts. Here are the main takeaways you need to know.

  • On Thursday, the Fifth Circuit Court of Appeals issued a decision that vacated the Department of Labor’s (DOL) fiduciary rule.  The ultimate fate of the rule is up in the air.  The DOL can appeal the decision. It may end up in front of the Supreme Court because of conflicting opinions among the appeals courts.
  • This ruling and the ultimate outcome of the DOL rule will not impact CLS’s status.  We have always been a fiduciary.
  • We will continue to monitor the situation.
  • The SEC continues to develop a uniform fiduciary framework, which may be published as early as this summer.  CLS will continue to help advisors transition to fee based practice.
  • We will continue to do what we’ve done since the inception of our firm in 1989 – act in your best interest.

Our interpretation of the rule is that regardless of outcome, advisors should consider switching to fee-based management as there are multiple benefits versus commission based business. You can learn more about the benefits in our “Making the Switch: The Benefits of Moving to a Fee-Based Model.”