In the wake of the Wednesday's deadline to
appeal the 5th Circuit Court's ruling striking down the Department of Labor's fiduciary rule,
Merrill Lynch has announced plans to re-evaluate its ban on commissions in retirement accounts.
Andy Sieg, the head of Merrill Lynch Wealth Management, announced the news during a conference call Friday morning with many of the wirehouse's more than 14,000 brokers, according to company spokesman Jerry DuBrowski.
The company issued the following statement Friday morning following the conference call:
"Now that the regulatory environment has shifted, we're taking a look at our policies, especially as they might affect policies and procedures for individual retirement accounts, to ensure we keep our clients' best interest front and center. Our core strategy, consistent with our principles, remains unchanged."
According to Mr. DuBrowski, Merrill will come back to the brokers with more information regarding any changes to the commission policy, which was introduced in April of last year, within 60 days.
He added that Merrill Lynch is "not walking away from our commitment to acting in best interest of the clients. That is not changing, and it will never change."
In October 2016, when the DOL rule appeared still on track to become law,
Merrill announced it would no longer offer new, advised commission-based IRAs beginning in 2017.
In full-page newspaper ads, Merrill advertised its new policy and commitment to clients' best interest. The firm said charging fees as a percentage of assets, instead of commissions on trades, is the best way to ensure retirement nest eggs are protected—what it called "a simple, open way to work that is intended to address these conflicts."
"We are committed to your best interest. Not the status quo," the ad stated. We believe we are honoring the spirit of the new rules — not looking for ways to get around them."
Elliot Weissbluth, founder and chief executive of HighTower Advisors, called the latest move by the wirehouse "completely predictable."
"The dirt isn't even solid on the grave on the DOL rule and Merrill is already grave dancing," he added. "This is a clear indication that it's business as usual on Wall Street."
