"No matter how this is resolved, most RIAs and advisors have modified their practices in anticipation that the DOL rule would be implemented," Heider said. "There's been many changes and this will have to be resolved to bring uniformity to the industry. “
The court’s ruling overturns a 2017 decision by a Dallas U.S. District Court that upheld the fiduciary rule.
The fiduciary rule’s best-interest contract provision, which would allow brokers to receive commissions and provide conflicted recommendations as long as they signed an agreement to act in the client’s best interest, was found by the majojrity opinion in the Fifth Circuit devision to expand the DOL’s authority beyond the scope of ERISA .
Blaine Aikin, executive chairmam of Pittsburgh-based Fi360 and a prominent fiduciary advocate, said that the industry should look to the SEC for fiduciary reforms.
"Given the uncertainty with regard to compliance and liability concerns, as well as investor protection under the DOL’s fiduciary rule, we urge the Securities and Exchange Commission to continue to work closely with the DOL in drafting a standard across regulatory jurisdictions that is principles-based and requires advisors to act in the best interest of the client without regard to their own financial interests,” said Aikin in released comments.