(Washington)

One of the big questions in the wealth management industry right now is what is next for the fiduciary rule. The rule has just suffered its first major court defeat and looks like it is down for the count. Yet, advocates are still trying to rally for it and arcane bureaucratic procedures mean outsiders have a hard time understanding how the rule can officially go away. While the DOL does not look likely to appeal the court ruling, another defendant could theoretically step in. Additionally, some argue that since it was the 5th circuit court which delivered the ruling, that its decision only vacates the rule in its region (Texas, Louisiana, and Mississippi). Some also think the DOL may drop out of working on the fiduciary rule altogether, leaving the whole thing for the SEC to manage.

FINSUM: So despite the positive ruling for those opposed to the rule, the path forward is still very uncertain. However, the likelihood of the rule ever coming into full force seems very low and the DOL says it will no longer enforce it.