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Stories of Interest
- Banca IMI Securities to Pay $35Mn for Improper Handling of ADRs in Continuing SEC Crackdown
- Members of White House ‘Arts Panel’ Resign En Masse in Protest of Trump
- FINRA Whiffs on Disciplinary Sanction: Bill Singer's 'Negligent Market Manipulation in OTC Stock Promotion'
- Heather Heyer’s Mother Says, ‘I’m Not Talking to the President’
- Goldman Sachs May Have Lost $100Mn on Energy Bet Gone Wrong
- SEC Drops Case Against Ex-JPMorgan Traders Over 'London Whale'
- Financial Advisers That Invest in Technology Need to Accomplish These Two Things
- FINRA Amends Codes Regarding Expedited Arbitrator List Selection
- FINRA July 2017 Quarterly Disciplinary Review (Podcast)
- Senior Exec in Citigroup's Equities Unit Has Left
- Prudential Plotting its Escape From Fed's Tough Oversight
- Why CEOs Spurned Trump's Business Councils, in Their Own Words
- A Stockbroker, Her LLC, and Her Customers' Loans (Or Investment?) - Bill Singer
- Brian Quintenz Sworn In as CFTC Commissioner
- A Gary Cohn Resignation Would 'Crash the Markets' – Mgmt Guru Jeffrey Sonnenfeld
- Trading Firm DRW to Buy RGM Advisors - As Low Volatility Forces Out Weak HFT Players (subsc reqd)
- Reputational Damage - Rajat Gupta on Hard Road to Recovery
- 7th Circuit Affirms Spoofing Conviction - Bill Singer
- Wells Fargo Announces Board Changes
- Judge Rules Against Ex-Goldman Employee in Fed Leak Case
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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.