Merrill Moves to End Commission IRAs
From the Desk of Jim Eccleston at Eccleston Law LLC:
In response to the Department of Labor’s fiduciary rule, which is set to begin on April 10, 2017, Merrill Lynch has decided to end its commission IRA business. By shutting down its commission IRA business, Merrill Lynch will become the first wirehouse to announce compliance plans with the DOL fiduciary rule, which signals a significant change in the brokerage industry.
Starting April 10, 2017, Merrill Lynch will mitigate all clients to its advisory platform, self-directed brokerage or robo advisory service. Merrill Lynch believes that moving to a fully fee-based business will help mitigate the risks involved in certain provisions of the new DOL rule.
However, not all firms are taking the path of Merrill Lynch. LPL Financial, the nation's largest independent broker-dealer, is still planning to offer a commission-based option to investors. Nevertheless, LPL Financial plans on taking other action to potentially mitigate the risk of violating the new rule, such as reducing the appearance of conflicts of interest by making commissions the same for all particular product lines.
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Related Attorneys: James J. Eccleston
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