The U.S. Department of Labor's ("DOL") Fiduciary Rule, redefining the term "fiduciary" under the Employee Retirement Income Security Act of 1974 ("ERISA") and the Internal Revenue Code of 1986, (the "Code") became applicable June 9, 2017. Morgan Stanley is relying on the DOL’s Prohibited Transaction exemption 2016- 01 ("Best Interest Contract Exemption"), which permits Morgan Stanley to receive compensation for services in connection with recommendations made with respect to certain retirement, welfare benefit, and education savings account assets without violating the prohibited transaction provisions under ERISA or the Code. In addition, Morgan Stanley is relying on the DOL’s Prohibited Transaction exemption 2016-02 ("Principal Transaction Exemption") which permits Morgan Stanley or an affiliate to engage in certain principal transactions and receive mark-ups, mark-downs and other similar payments without violating the prohibited transaction provisions under ERISA or the Code. To learn more about your relationship with your Financial Advisor and Morgan Stanley please access the appropriate link below:
Clients utilizing the Graystone Consulting Institutional Services Agreement please access the link Graystone/Institutional Retirement Accounts for the program ADV named Graystone Consulting
Clients utilizing the Morgan Stanley Smith Barney Institutional Services Agreements please access the link Graystone/Institutional Retirement Accounts for the program ADV named Institutional Services (Asset Based)
Clients enrolled in a Corporate Retirement Plan or Business Retirement Plan Program, please click here for additional details
For clients with IRA, SEP, SIMPLE Accounts please click here for additional details
In addition, where our agreements, disclosures, marketing materials, general descriptions, and other information provide that we are not “fiduciaries” (under ERISA or the Code) with respect to the services or activities described therein, unless otherwise provided in writing by us or in a written agreement with us, we hereby acknowledge and agree that such limiting provisions are not applicable to you when they are inconsistent with the DOL Fiduciary Rule. As such, effective after June 9, 2017, to the extent Morgan Stanley provides “investment advice” to you with respect to certain retirement, welfare benefit, or education savings account assets for a fee or other compensation as defined under the DOL Fiduciary Rule, Morgan Stanley will be providing such advice in its capacity as a fiduciary under ERISA and/or the Code.
Should you have any questions now about how the DOL Fiduciary Rule will affect your retirement services, please contact us.