The Secretary of the Commonwealth of Massachusetts, William
Galvin, has filed a complaint against Arizona-based discount
brokerage Scottrade, citing a violation against the Department
of Labor’s (DoL) fiduciary standard rule.
the complaint alleges, knowingly violated its own internal
policies that were put in place to ensure compliance with the
rule by instigating a number of internal contests based on the
sale of retirement accounts.
Scottrade offered a series of sales contests to incentivise
brokers to sell retirement accountsThe move comes amidst a
period of uncertainty regarding the rule, the enforcement of
large parts of which have been delayed until July 2019. The
Securities and Exchange Commission (SEC) has also made it clear
that it is exploring its own version of the rule that could
supersede that of the DoL.
State v DoL
While the complaint heavily referenced the fiduciary rule
itself, the regulator filed its complaint based on...