Industry trade groups and consumer advocates focus on the rule’s enforcement mechanism.
Industry executives from giant firms to midgets say they and their brokers are struggling with what’s to come two weeks before the fiduciary rule becomes effective.
Brokers have abandoned “hundreds of thousands” of small investors in last month out of fear of being sued over retirement-account violations, executive says.
In mid-year change, trading charge cannot exceed 2.5% of a transaction and the $125 minimum “ticket” charge for a stock trade has been eliminated.
Raymond James CEO, UBS’s head of managed accounts and others in the industry argue for at least six more months to prepare for rule’s implementation.
Firm uses likely delay in fiduciary rule’s effective date to consider allowing commission-based IRAs in “limited” situations.
In an effort to mobilize the “grassroots,” LPL Financial sends its 14,100 affiliated brokers a trade group-coordinated way to instantly send comments.
Six went Friday to Morgan Stanley, which has flaunted a less restrictive retirement account policy for brokers than has Merrill.
Guided by Trump’s memo urging review of the rule’s economic effects, the start date will now likely be June 9, 2017.