Death of DOL’s Fiduciary Rule in March Leads to Merrill Lynch Policy Change
According to reports this week, Merrill Lynch said on Thursday it is reintroducing commissions for its retirement accounts, reversing a policy put in place to comply with Pre-Trump Fiduciary Rule regulation.
Last June, Merrill Lynch, along with JPMorgan Chase & Co, reportedly banned brokerage retirement accounts and began moving clients into advisory accounts to prepare for the U.S. Department of Labor’s fiduciary rule meant to protect investors from commission-seeking financial advisors.
The 5th U.S. Circuit Court of Appeals overturned the fiduciary rule in March. At that time, Merrill executives reportedly said the firm would keep the policy in place to serve the best interests of its clients.
The company is now reversing that policy and expects to add a brokerage option back to individual retirement accounts by Oct. 1.
The U.S. Securities and Exchange Commission recently proposed a replacement rule that would require brokers to act in the best interest of clients when making investment recommendations for all types of accounts.
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