Cambridge Investment Research on Tuesday joined a number of other broker-dealers who way they will continue to offer commission-based retirement accounts after the new DOL fiduciary rule goes into effect next year.
The other firms which had made this announcement recently include Raymond James Financial (RJF), Ameriprise Financial (AMP), Morgan Stanley (MS) and Cetera Financial Group.
The Fairfield, Iowa-based broker-dealer, which has some 3,000 affiliated advisors, says it plans to apply the Best Interest Contract provision announced by the DOL for some commission-based accounts, while the discretionary advisory business will be supported through level fee platforms.
Commission-based retirement accounts will be acceptable at Cambridge, however the commissions must be "levelized by each pre-defined investment category so that all similar investment options have the same compensation structure," according to the independent broker-dealer.
"We think every firm should have a unique value proposition while serving the best interests of the investing clients. Serving the needs of the client must clearly be the highest priority, along with observing regulatory requirements …," said President Amy Webber, in a statement.
