CFP Board Files Amicus Brief in Support of Department of Labor's Fiduciary Rule

On June 21, 2024, CFP Board filed an amicus brief in the U.S. District Court for the Eastern District of Texas, supporting the Department of Labor's (DOL's) fiduciary rule against challenges from those who seek to stop the rule from taking effect.

CFP Board supports the Retirement Security Rule because the prior regulation has enormous gaps that leave Americans exposed to conflicted advice. The stakes are high. Tens of billions of dollars are being taken from the American public by financial advice that is in the best interest of the advisor, not the investor.

Research demonstrates that investors expect to receive best-interest advice (including about rollover recommendations and other one-time recommendations) that is not tainted by conflicts of interest that increase costs and undermine the quality of the advice.

While DOL's opponents have expressed concern for moderate-income investors, CFP Board believes that their concerns are misdirected. Empirical research and CFP Board's practical experience confirm that moderate-income investors retain ready access to financial advice when it is provided under a fiduciary standard.

CFP Board filed the amicus brief in the district court case Federation of Americans for Consumer Choice, Inc.; James Holloway; James Johnson; TX Titan Group, LLC; Provision Brokerage, LLC; and V. Eric Couch v. United States Department of Labor and Julie Su, in her official capacity as Acting Secretary of Labor. The judge has not yet decided whether to accept any of the three amicus briefs that have been filed, including CFP Board's.