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The
rule, announced by the Department of Labor in April and
effective next year, sets a so-called fiduciary standard for
financial brokers who sell retirement products, requiring them
to put clients' best interests ahead of their own bottom line.
The language in the new rule is tougher than an existing rule
that only requires brokers to ensure products are "suitable."
BlackRock said it would lower the expense management ratio for
15 U.S. iShares Core ETFs within its iShares business by 2 to 5
basis points.
The management fee for its flagship iShares Core S&P 500 ETF <IVV.P>
will fall to 4 bps from the current 7 bps.
"Now, with the Department of Labor fiduciary rule coming into
force, financial advisors are sharpening their focus on the
quality and cost-efficiency of funds," BlackRock said in a
statement.
Fidelity Investments, which had dominated the U.S. mutual fund
industry until the dot-com bubble burst in the early 2000s, had
lowered expenses on 27 Index Mutual Funds and ETFs in June.
(http://bit.ly/2cRzTdR)
(Reporting by Subrat Patnaik in Bengaluru; Editing by Amrutha
Gayathri)
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