Bank of America's Moynihan: No quick pullback from fiduciary rule

Chairman and CEO of the bank that contains Merrill Lynch says the DOL regulation is part of a larger trend in financial services

Jul 18, 2017 @ 1:56 pm

By Bruce Kelly

Bank of America Corp's chairman and CEO, Brian Moynihan, does not see a quick pullback from the Department of Labor's fiduciary rule.

The bank's global wealth and investment management group, which contains Merrill Lynch Wealth Management, last year said it was eliminating commissions from advised brokerage IRAs, sending a shock through the investment advice industry. The goal of the rule is to eliminate potential conflicts brokers face when recommending one product to clients rather than another.

The November election of Donald J. Trump was widely seen as an opening for the repeal of the fiduciary rule, along with a number of provisions from the 2010 Dodd-Frank Act.

During a conference call Tuesday morning with investors to discuss second quarter results, Mr. Moynihan was asked whether the fiduciary rule could be repealed. He responded: "Let's see what happens. I don't think it's going to change our thinking." He added that the DOL fiduciary rule was part of a larger trend in financial services that is bringing prices down for consumers.

Meanwhile, the number of Merrill Lynch advisers increased 1.8% to 14,811 at the end of June compared to the previous quarter, a net addition of 254 for the three months.

And Merrill Lynch will look to continue to expand the brokers and advisers under its roof, he said.

"We have a tremendous customer base that is underserved in the investment management area. We are going to continue to grow" the number of advisers, Mr. Moynihan said. "You should expect that number to continue to go up."

Growth in the number of advisers came despite Merrill Lynch recently losing highly productive financial advisers. In May, Merrill Lynch, along with rival Morgan Stanley, said it was reducing its reliance on recruiting experienced advisers and putting renewed focus on training younger advisers and building staff.

Global wealth and investment management also reported a record $804 million of net income, an increase of 14% when compared to the same quarter a year earlier.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Ron Carson: If you aren't growing you're dying

There are two group of advisers, according to Ron Carson: Those that are expanding and those that are just "hanging on." So, which group do you belong to?

Latest news & opinion

LPL rolls back recruiting policy aimed at driving more assets to its corporate RIA

LPL erases $50 million hurdle for new advisers to join so-called hybrid firms.

Don't be fooled by the numbers — the industry is in a dangerously vulnerable state

Last year's stock market gains helped advisers turn in solid growth in assets and revenue, but that growth could disappear in the next market downturn.

Divided we stand: How financial advisers view President Trump

InvestmentNews poll finds 49.2% approve of his performance, while 46.7% disapprove. How has that changed over the course of his presidency?

10 states with the most college student debt

Residents of these states have the most student debt when you consider their job opportunities.

Ex-Wells Fargo brokers sue for damages, claiming they lost business in wake of scandals

In a Finra arbitration complaint, two brokers allege that Wells Fargo's problems damaged their business.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print