There has been confusion around the status of PTE 2020-02 due to the existence of two versions issued under different administrations. However, when the regulatory mechanics are properly understood, the conclusion is clear: PTE 2020-02 will remain in effect and required for rollover recommendations. 

Two Versions of PTE 2020-02 

• Original PTE 2020-02 (Trump Administration, 2020):
  This exemption established the framework under which fiduciaries could receive compensation when making rollover recommendations, subject to best-interest standards and documentation requirements. 

• Revised PTE 2020-02 (Biden Administration):
  Issued alongside the updated fiduciary rule, this version refined and, in several respects, expanded flexibility for firms while maintaining core investor-protection principles. 

The litigations and eventual withdrawal by DOL pertain to the Biden-era fiduciary rule and its related exemption, not the original 2020 exemption. 

What Happens If the Biden Rule Is Set Aside? 

• The original PTE 2020-02 would automatically remain in force. 

• There would still be a governing exemption permitting rollover recommendations. 

• Firms would continue to rely on PTE 2020-02 to receive compensation in connection with rollovers. 

In other words, the litigation does not eliminate the need for PTE 2020-02, it simply determines which version applies. 

Why PTE 2020-02 Is Unlikely to Disappear Entirely 

• The lawsuits do not challenge the original 2020 exemption. 

• It is highly unlikely that the Department of Labor would withdraw both versions of PTE 2020-02. At a minimum, the original PTE 2020-02 will remains operative. 

• Eliminating the exemption entirely would effectively prohibit fiduciaries from recommending rollovers, an outcome that is neither practical nor aligned with longstanding DOL policy. 

Bottom Line 

Regardless of the various litigations: 

• PTE 2020-02 remains required for rollover recommendations involving compensation. 

• This is on the SEC and FINRA’s statement of priorities and firms should continue to operate as though best-interest analysis, documentation, and supervisory oversight are mandatory, not optional. 

• Any strategy premised on “waiting out” PTE 2020-02 carries regulatory risk. 

How InvestorCOM Is Helping Firms Stay Ahead 

PTE 2020-02 remains in effect and so do its documentation and oversight expectations. Firms that are succeeding aren’t waiting for clarity; they’re embedding best-interest analysis directly into the advisor workflow and enabling business. 

InvestorCOM helps firms operationalize PTE 2020-02 and Best Interest Rollovers by enabling consistent rollover analysis, clear cost and alternative comparisons, and native, point-in-time documentation that stands up to scrutiny. The result is a more defensible process, without adding friction for advisors. 

As the rules evolve, the obligation to act in the client’s best interest and prove it does not. InvestorCOM helps firms do both confidently and at scale. 

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