CFP Board Files Brief Supporting DOL’s Fiduciary Rule

Updated May​ 31, 2025

The CFP Board has voiced its support for the Department of Labor’s Retirement Security ‍Rule, filing an amicus brief in a Texas court. The brief challenges a lawsuit brought by The Federation of Americans for Consumer Choice (FACC), which seeks to invalidate​ the DOL’s rule.

Issued in april, the Retirement Security Rule broadens fiduciary ⁢obligation⁣ to include financial professionals advising on IRA rollovers and annuity sales.The ‌FACC lawsuit,backed by various opponents,claims the ‍rule would limit advice to less affluent investors.

The CFP Board ⁣counters this claim, citing​ research and experience. The board contends that the DOL’s ⁣rule complements the SEC’s Regulation⁣ Best Interest (Reg BI) by addressing gaps in retirement investment recommendations.⁢ While Reg BI applies to securities, the‍ DOL’s rule extends to insurance products and other⁤ financial instruments.

The ‌CFP Board⁢ argues that invalidating the DOL’s rule would ‌create regulatory loopholes, perhaps allowing advisors to recommend unsuitable financial⁤ products to​ retirement ⁣investors, thereby violating the Employee Retirement Income Security Act of‍ 1974 (ERISA).

The ⁤U.S. ⁤Chamber of Commerce, which previously challenged a similar fiduciary ⁢rule in 2018, also supports the FACC lawsuit.

What’s next

The court will consider arguments from⁢ both sides before making a ruling on the Retirement Security rule. The decision could considerably impact the ⁤scope⁢ of fiduciary duty for financial⁣ advisors and the protections afforded to retirement investors.