Merrill Lynch may reverse its stance on fee-based retirement accounts
Merrill Lynch may reverse a ban on commissions in retirement accounts the firm manages, marking a potentially significant retreat for a leading advocate of fee-based accounts.
The brokerage arm of Bank of America Corp. BAC, -0.83% banned commissions for retirement accounts in anticipation of the Labor Department’s “fiduciary rule,” which went into effect in April 2016. The regulation was meant to protect retirement savers from conflicted financial advice from brokers seeking commission income.
But the rule was thrown out by a U.S. Circuit Court in March. And the Securities and Exchange Commission is working on its own version of a best-interest rule that would apply to brokers.
That has led Merrill to review its policy, setting the stage for a potential about face on aggressive changes it had said were in the best interest of clients.
A complete version of this story can be found at WSJ.com.
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