What’s in your wallet? Not commissions on advising retirement accounts if you work for Capital One Investing.
The online and retail brokerage arm of Capital One Financial has announced its decision to eliminate commissions on advised IRAs to conform with the Department of Labor’s fiduciary rule for tax-advantaged retirement accounts, which is scheduled to take effect on April 10, 2017.
According to Financial Advisor IQ, the firm said the decision to ban trade commissions and allow only fees on assets under management in retirement accounts was a “natural decision” for the firm.
And, with rumors still swirling about what might happen with the fiduciary rule, Capital One says it will hold with its decision to eliminate commission-based servicing of those retirement accounts “regardless of potential changes to the rule.”
Financial Advisor IQ notes that Capital One Financial’s financial advice and planning business is only a year old, operating out of several regional offices and a call center in Wilmington, Del. The unit manages about $26 billion.
Firms that have said they were going to continue supporting commission-based fees for retirement accounts include: