Retirement savers are left in limbo now that a court decision has knocked down an investor protection rule.
The 5th Circuit Court of Appeals on Thursday decided to vacate the "fiduciary rule," a regulation from the Labor Department that would require advisors working with IRA and 401(k) savings to place investors' interests before their own.
Portions of the rule already began taking effect in 2016, including a provision that required financial advisors to charge no more than reasonable compensation, avoid misleading statements and provide advice in the best interest of the investor.
Other parts of the rule, however, would have been delayed to July 1, 2019. This includes a provision that would permit advisors to continue earning commissions, provided they enter a contractual agreement that they will act in the client's best interest.