Within the past week, two Texas federal district courts issued orders vacating the DOL’s 2024 “Biden-era” Rule (the “2024 Fiduciary Rule”).

In response, on March 18, 2026, the DOL re-codified the 1975 fiduciary regulation, restoring the ‘Five-Part Test’ as the standard for determining when advice triggers fiduciary status under ERISA.

The Five-Part Test determines when someone becomes an ERISA ‘investment advice fiduciary.’ In general, it looks at whether the person provides investment advice for a fee, under an arrangement or understanding that the advice is individualized and is provided on a regular basis as part of the investor’s decision-making.

PTE 2020-02 is a widely used exemption that allows advisors and firms to receive compensation when providing fiduciary investment advice. This is central to how many firms structure and defend rollover recommendations.

When PTE 2020-02 was issued, the DOL included a preamble containing a “final interpretation” of the Five-Part Test. On March 18, 2026, the DOL withdrew the PTE 2020-02 preamble by republishing PTE 2020-02 in original form.

1. Expect ongoing noise from court decisions and shifting interpretations, especially around rollovers.
2. Maintain a defensible best-interest process: document rationale, compare key alternatives, and clearly disclose/mitigate conflicts
3. Remember: SEC Reg BI (including the Care Obligation) still applies to retail recommendations regardless of ERISA uncertainty. Reg BI and SEC’s guidance on the topic remains in force when making recommendations to retail customers. In practice, exam and enforcement risk often turns on whether you can show:
   • a reasonable basis for the recommendation,
   • consideration of key alternatives,
   • and clear documentation of conflicts and rationale.

1. With the DOL reverting to the Five-Part Test framework and restoring prior PTEs, while withdrawing interpretive material tied to PTE 2020-02, many firms are choosing the “common sense” path: act in the client’s best interest, follow a consistent rollover process, and document decisions in a way that stands up to supervision and exams.
2. Rollovers represent approximately $1T annually in addressable assets, and many firms are prioritizing systematic capture and retention of these flows. A strong digital rollover workflow helps firms:

• standardize how recommendations are evaluated and documented
• strengthen supervision and oversight
• reduce “key-person dependency” and inconsistent advisor practices
• improve productivity, freeing advisors to spend time on client conversations rather than manual paperwork