Commission Based IRA Class Action Investigation

Investigating a class action against various brokerage firms who sell their clients commission-based products for their individual retirement accounts. A recent case upheld a Department of Labor fiduciary rule that requires brokers to act in their client’s best interest when choosing investments for retirement portfolios. Before this rule went into effect, brokerages could sell client’s commission-based products under the best interest contract exemption, which allowed brokers to choose products that also give them a financial benefit. Now brokers must shift to advisory fees instead of brokerage commissions to ensure that they are acting in the client’s best interest. If your broker has invested your IRA in commission-based products when alternative, non-commission driven investments were available, please contact us.

Disclaimer