The firm told clients they have to move to fee-based or self-directed accounts, unless there is a delay in the DOL fiduciary rule
JPMorgan seems to be in a state of flux, along with other broker-dealers, in terms of what to do with plans to drop commissions in retirement accounts as part of its compliance with the Department of Labor’s new fiduciary standard.
A letter sent to clients earlier in March said they would be moved into self-directed accounts by April 7, if they had not already moved into a fee-based managed account or chosen the self-directed option. However, the letter also said any delay in the implementation of the rule would put a hold on the automatic shift.
“Regardless of the ultimate path that Bank of America chooses to take, Pandora’s box has been opened, and the fee discussion is now front and center for clients, so whether or not the fiduciary rule is implemented in its current state may be a moot point,” Kleinhanzl and Brown said at the time.
The KBW analysts say there are advantages and disadvantages to a shift in Merrill’s previous fee-only approach.
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