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Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
Merrill Lynch Reverses Course on Commission-Based IRAs
Last October, Merrill Lynch was the first major firm to announce plans to comply with the Labor Department’s fiduciary rule for retirement accounts, when it decided to no longer give retirement savers the option of paying a commission for trades. Instead, the firm opted to go with fee-based accounts, in order to minimize potential conflicts tied to specific investment products. [Financialish, 10/6/16]
Today, the firm reversed its decision and announced plans to introduce new commission-based retirement accounts, beginning 6/12/17 – days after the fiduciary rule is scheduled to become effective. On that day, such accounts will only be allowed to hold investments in money market funds and brokered CDs. Eventually, concentrated stock positions will be added to the investment mix. Merrill clients with $50 million or more with the brokerage will have the added option of being able to house private-equity and hedge-fund investments in a commission-based retirement account. Such investments are not conducive to a fee-based structure, and they’re not likely to involve much, if any, trading. The trading of stocks, bonds, ETFs, and mutual funds will not be permitted.
When all is said and done, the changes will be limited in nature - because they're intended to benefit those Merrill clients who are in special situations.