Starting June 9, the same day the DOL's fiduciary rule takes
effect, advisers who want to buy mutual fund class shares for
retired clients will be required to buy T shares, which pay
advisers a 2.5 percent commission upfront and a 0.25 percent
These shares differ from other mutual fund shares, such as A or
C shares, because the flat commission and ongoing fee they
charge eliminates any possible conflict of interest that could
encourage an adviser to recommend one type of mutual fund over
another for clients.
The DOL's fiduciary rule requires brokers to put client's
interests first by avoiding investment products that could
present a conflict of interest.
Wells Fargo Advisors spokeswoman Emily Acquisto said the firm is
prepared for the June 9 start date of the new rule, and they
continue to asses evolve the firm's financial planning strategy
and tools "to ensure our clients have the best outcomes under
(Reporting by Elizabeth Dilts; Editing by Andrew Hay)
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