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DOL Fiduciary News: April 12, 2017

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JPMorgan Delays Shifting Some Wealth Clients as U.S. Mulls Rules

Bloomberg; April 11, 2017, 8:22 PM EDT

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 the Trump 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 U.S. Department of Labor prepared to enact the so-called fiduciary rule, which seeks to ensure advisers pitch products in savers’ best interests.

But in a follow-up letter to clients this week, the New York-based bank said it’s holding 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 Bloomberg. 

More 401(k) advisers face litigation risk in June under DOL fiduciary rule

InvestmentNews; Apr 11, 2017 @ 2:40 pm

A greater number of advisers and firms servicing 401(k) plans and their participants could be at risk of litigation in a few months' time, when implementation of some provisions of the Labor Department's fiduciary rule are set to kick in.

This is due to the details of the recently finalized delay to the fiduciary rule issued last week by the Trump administration, as well as nuances of the regulation and its interplay with federal retirement law.

While the delay pushed off compliance with some aspects of the rule until 2018, advisers will have to act as fiduciaries and adhere to impartial conduct standards when giving investment advice for a fee in retirement accounts come June 9.

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