Even as the industry takes stock of what President-elect Trump might do to the Labor Department’s fiduciary regulation, another firm says it will stop offering commission-paying retirement accounts.
Reuters reports that JPMorgan Chase & Co said on Wednesday it will stop offering commissions-paying retirement accounts, joining firms like Commonwealth Financial Network and Merrill Lynch in deciding to move away from offering commission-based products in the retirement accounts they serve.
According to the report, starting in April, clients of Chase Wealth Management, Private Bank and J.P. Morgan Securities have two options: They can either chose to pay a financial adviser a flat fee based on how much money they have invested, or they can use an online platform to manage their retirement account themselves.
Reuters says that just 5% of the $1.1 trillion in client assets managed at J.P. Morgan Wealth Management & Investment Solutions are held in retirement accounts, and only those in commission-paying accounts will be affected by the change.
Firms that have said they will continue to support commission-based fees for retirement accounts include: