Thu, Apr 13, 2017 - Page 10 News List

JPMorgan delays wealth client move as US mulls rules

REASONABLE:The pending rule says advisers handling retirement accounts must give advice in a client’s best interest and not charge too much


JPMorgan Chase & Co is delaying a plan to move some wealth management clients to a self-directed platform as the bank awaits word on whether US President Donald Trump’s administration will rewrite or scrap higher standards for brokers.

The bank had told some customers they would be transferred this month to a system letting them manage their own retirement accounts as the US Department of Labor prepared to enact the so-called fiduciary rule, which seeks to ensure advisers pitch products in savers’ best interests.

However, in a follow-up letter to clients this week, the New York-based bank said that it is planning to hold off on the changes.

Meanwhile, “your financial adviser can continue to provide you with investment guidance and assist with any service requests you may have on this account,” the firm wrote, according to a copy of a letter obtained by reporters.

A company spokesman did not respond to a message seeking comment outside normal business hours.

Broadly, the pending Labor Department rule says advisers handling retirement accounts must give advice in a client’s best interest and should not earn more than reasonable compensation.

Shortly after taking office, Trump signed an executive memorandum directing the regulator to review the measure, a move that has left its fate in limbo.

The rule had been set to take effect this week, but the Labor Department moved to extend a deadline for compliance by two months as it continues the examination.

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