JP Morgan Prepares Wealth Clients for End of IRAsJP Morgan Prepares Wealth Clients for End of IRAs

NEW YORK, March 13 (Reuters) - JPMorgan Chase & Cohas sent some wealth management customers letters this monthnotifying them that they will be moved to the firm'sself-directed platform soon ahead of a pending Labor Departmentretirement regulation, the bank said on Monday.

While implementation of the U.S. Labor Department'sfiduciary rule may ultimately be delayed, the letters went outas part of a plan the bank announced in November to endretirement accounts that pay financial advisers commissions.

Clients of Chase Wealth Management, Private Bank and J.P.Morgan Securities who had individual retirement accounts weregiven the option to either chose to pay a financial adviser aflat fee based on how much money they have invested, or anonline platform to manage their retirement account themselves.

The move only affected a small portion of J.P. Morgan'sclients because only 5 percent of the $1.1 trillion in clientassets managed at J.P. Morgan Wealth Management & InvestmentSolutions are in retirement accounts. However, some clients hadnot yet responded with an answer as to which option they wanted.

Clients who had not chosen one received the letters in earlyMarch to notify them that by April 7 they will be moved to theself-directed platform unless they respond with anotherpreference.

"We wanted to make sure we gave client ample opportunity todecide which option they preferred," said JPMorgan Chasespokesman Darin Oduyoye.

The fiduciary rule aims to put the interests of retirementinvestors first by eliminating potential conflicts of interestfor advisers, such as investments that pay different levels ofcommissions.

As a result, JPMorgan, Bank of America's MerrillLynch and Commonwealth Financial Network, among others, havechosen to gradually phase out retirement accounts that paycommissions. (Reporting by Elizabeth Dilts; Editing by Cynthia Osterman)