In the Margins

Is fiduciary rule reason for Morgan Stanley, Vanguard breakup?

May 9, 2017

By InvestmentNews

Morgan Stanley's decision to eliminate new sales of Vanguard Group mutual funds appears to reduce a potential conflict under the Department of Labor's fiduciary rule. "It's possible Morgan Stanley did it because Vanguard is not paying for shelf space, but the company has to treat everyone the same now" because of the DOL's rule, said one Morgan Stanley adviser, who declined to be named and said he did not have any direct insight into the firm's thinking. Read the original story from InvestmentNews.