J.P. Morgan Halts Sales of 529 College Savings Plans

September 27th, 2021, 12:00 AM

J.P. Morgan Wealth Management (J.P. Morgan) announced it would no longer allow the sale of 529 college savings plans with upfront sales charges sold by its advisors. The company's decision is consistent with industry trends toward fee-based compensation. The decision also highlights the SEC's Regulation Best Interest's (Reg BI) influence on the 529 plan market. 

In an announcement, J.P. Morgan stated, "With this change, more of what the client invests goes towards their education goals." According to InvestmentNews, J.P. Morgan is limiting its advisors to recommend 529s without upfront sales charges. The list of "select plans" that advisors can sell has not changed, but the sales charge waiver is a new addition. 

Paul Curley, director of 529 and ABLE research at ISS Market Intelligence, said, "The shift in advisor compensation better aligns with the reality that college financial planning is a marathon that requires shifts over time in account contribution strategies."

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.

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Blog

J.P. Morgan Halts Sales of 529 College Savings Plans

September 27th, 2021, 12:00 AM

J.P. Morgan Wealth Management (J.P. Morgan) announced it would no longer allow the sale of 529 college savings plans with upfront sales charges sold by its advisors. The company's decision is consistent with industry trends toward fee-based compensation. The decision also highlights the SEC's Regulation Best Interest's (Reg BI) influence on the 529 plan market. 

In an announcement, J.P. Morgan stated, "With this change, more of what the client invests goes towards their education goals." According to InvestmentNews, J.P. Morgan is limiting its advisors to recommend 529s without upfront sales charges. The list of "select plans" that advisors can sell has not changed, but the sales charge waiver is a new addition. 

Paul Curley, director of 529 and ABLE research at ISS Market Intelligence, said, "The shift in advisor compensation better aligns with the reality that college financial planning is a marathon that requires shifts over time in account contribution strategies."

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.

Return to All