Morgan Stanley has said that it will allow its wealth management clients choose the way they pay for retirement accounts covered by the new Department of Labor (DOL) fiduciary rule.
Clients of the firm who choose transaction-based pricing will have access to retirement brokerage accounts and receive advice adhering to the DOL rule and best interest contract exemption, the US banking major said.
The retirement brokerage accounts will include mutual funds and exchange traded products, among other products.
The company further said that clients opting for a fee-based retirement account will continue to have access to its investment advisory offerings.
Morgan Stanley co-heads of wealth management Shelley O’Connor and Andy Saperstein said: “Client needs vary by their individual situations, and they tell us they want choice in how they pay for services. We believe our advisors can most effectively uphold a fiduciary standard of care and work in clients’ best interests by continuing to offer choice.”
The new fiduciary rule, unveiled in April 2016, requires retirement advisors to put their clients' best interests first ahead of their own profits. The rule is expected to be effective from 2017.