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JPMorgan Halts Action as DOL Weighs Fiduciary Rule

April 13, 2017

JPMorgan is postponing moving certain clients to its self-directed platform while it waits to see what will happen to the Department of Labor’s stalled fiduciary rule, as it’s possible Donald Trump’s administration might rewrite or repeal the provision, Bloomberg reports.

Some customers with human advisors had been told they would be moved to the firm’s robo-advisor in May, explaining that the move would let them manage their own retirement accounts in compliance with the DOL rule, the news service reports.

However, a follow-up letter seen by Bloomberg explained that JPMorgan was delaying the move, and in the meantime, “your financial advisor can continue to provide you with investment guidance and assist with any service requests you may have on this account.”

A company spokesman confirmed to Bloomberg the contents of the client communication but declined to elaborate.


The rule was scheduled to go into effect April 10 but the DOL will now perform a review to determine if it could hurt Americans’ ability to get professional retirement advice. The review, prompted by a February 3 memorandum from President Trump is expected to be completed by Jan. 1, 2018.

The rule’s implementation has been delayed until June 9. Meanwhile, the DOL says it won't mandate any regulatory requirements as far as disclosures and compliance representations to investors until 2018.

By FA-IQ Staff
  • To read the Bloomberg article cited in this story, click here.