Jon Stein, CEO and founder of 401(k) robo-advisor Betterment for Business and a staunch fiduciary advocate, expressed his disappointment at the decision.
“Throughout the fight for the fiduciary rule, we’ve seen positive evolution to financial services--including easier access to low-cost investments and heightened awareness of how financial providers are compensated,” said Stein in a released comment. “The decision to void the fiduciary rule is not only a step backwards for the industry, but an attack against the biggest benefit for America’s 75 million hard-working retirement savers. Once again, Wall Street firms have won at the expense of the individual investor.”
Meanwhile, the Indexed Annuity Leadership Council (IALC), another financial industry group opposed to the DOL rule, voiced its support for the Fifth Circuit’s ruling.
“We are pleased with the Fifth Circuit’s ruling and believe it to be a win for American retirement savers,” said Jim Poolman, executive director of the IALC. “We disagreed with the DOL’s enforcement mechanism because it operated to reduce access and limit choices for individuals who have worked hard to plan and save for their financial futures.”
Dan Jamieson contributed to this report.