ARTICLE
11 November 2016

DOL Fiduciary Rule Affecting Broker Recruitment Activities

KL
Herbert Smith Freehills Kramer LLP

Contributor

Herbert Smith Freehills Kramer is a world-leading global law firm, where our ambition is to help you achieve your goals. Exceptional client service and the pursuit of excellence are at our core. We invest in and care about our client relationships, which is why so many are longstanding. We enjoy breaking new ground, as we have for over 170 years. As a fully integrated transatlantic and transpacific firm, we are where you need us to be. Our footprint is extensive and committed across the world’s largest markets, key financial centres and major growth hubs. At our best tackling complexity and navigating change, we work alongside you on demanding litigation, exacting regulatory work and complex public and private market transactions. We are recognised as leading in these areas. We are immersed in the sectors and challenges that impact you. We are recognised as standing apart in energy, infrastructure and resources. And we’re focused on areas of growth that affect every business across the world.
The Labor Department's fiduciary rule, unveiled in April, is affecting the broker recruitment efforts of many large banks.
United States Finance and Banking

The Labor Department's fiduciary rule, unveiled in April, is affecting the broker recruitment efforts of many large banks. Morgan Stanley says it will immediately pull its incentive-laden back-end portions of the recruitment packages it offers to prospective brokers from rivals in order to eliminate potential conflicts under the rule. Meanwhile, competitors including Merrill Lynch and Wells Fargo are considering doing the same. The changes could result in more brokers becoming independent financial advisers by launching their own registered investment advisory firms, the Wall Street Journal reports.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More