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Stories of Interest
- Louisiana Adviser Barred for Hiding Losses from Investors
- Connecticut HF Manager Illegally Diverted Investor Money - Now Owes Nearly $13Mn
- White House Cleaning House of Advisors Without Full Security Clearance
- Goldman Projects 30% Growth in Wealth Management Advisor Force
- Whistleblower Alleges Manipulation of CBOE Volatility Index
- FINRA Looking Into VIX (CBOE Volatility Index) Manipulation: WSJ
- Atlanta-Area Resident Charged with Misusing Investor Funds - SEC
- FINRA Announces 2018 West Region Networking Seminar
- Alberto Arevalo, Associate Director in Office of International Affairs, to Retire From SEC
- A Culprit for Financial Site Glitches: You and Your Apps
- Investor Protection, Capital Formation and Market Integrity Are Top Priorities in SEC Budget Request
- We Must Stop Out-Of-Control Trading or U.S. Capitalist System Will Break Down - Dick Bove
- SEC Launches Share Class Selection Disclosure Initiative to Encourage Self-Reporting and the Prompt Return of Funds to Investors
- BofA CEO Moynihan Got $23Mn Compensation for 2017 – a 15% Pay Raise
- Former Credit Suisse ‘Star’ Gets 5-Year Jail Term For "Clever Fraud"
- FINRA: Perspectives on Customer Arb Award Recovery
- FINRA: Amend Membership App Program to Incentivize Arbitration Award Payments
- Goldman's #2 Allegedly Swindled Out of $1.2Mn of Wine by Assistant
- FINRA Publishes Annual Budget Summary - No Fee Rate Increases for Member Firms
- CFTC Chairman Giancarlo Names Maggie Sklar Senior Counsel
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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.