Investor Alert: Brokerage Firms to Eliminate Fee-based Accounts
A new court ruling could have a big affect on your investments if you currently hold a fee-based brokerage account. The U.S. Court of Appeals for the District of Columbia Circuit recently ruled that effective October 1, brokerage firms may no longeroffer fee-based advisory accounts to clients.
Anne Osmer Reporting
A new court ruling could have a big effect on your investments if you currently hold a fee-based brokerage account.
The U.S. Court of Appeals for the District of Columbia Circuit recently ruled that effective October 1, brokerage firms may no longer offer fee-based advisory accounts to clients. Current accounts must be closed and the assets moved to commission-based or other accounts.
One option noted by Don Blandin, President and CEO of nonprofit organization Investor Protection Trust (IPT), is to simply close your brokerage account and retain the services of a licensed investment advisor.
He advises doing your homework beforehand – for example, checking out the advisor with your state securities regulator (in Michigan, the Office of Financial and Insurance Services). See IPT's booklet "Getting Help With Your Investments" for more advice on investing.
