FINRA Warns Brokers Marketing "No-Fee" IRAs
By Hal M. Bundrick
NEW YORK (MainStreet)--The marketing of "free" or "no fee" brokerage and IRA accounts is gaining the attention of FINRA, the U.S. securities firm regulator.
"Broker-dealers' marketing campaigns often emphasize that fees are not charged in connection with their retail brokerage accounts and IRAs," the regulator says in an advisory notice to firms. "Nevertheless, while certain types of fees may not be charged, others will be."
FINRA notes that such accounts may be subject to fees for opening, maintaining or closing accounts, as well as additional charges such as brokerage commissions, management fees and other product-level expenses. The agency adds that "some broker-dealers' communications that discuss fees may not be fair and balanced, and could be misleading."
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