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LPL Simplifies and Cuts Fees for Advisors

November 8, 2017

As LPL Financial fights to hold on to assets from National Planning Holdings broker dealers, LPL advisors who use its RIA to custody assets are getting a break, InvestmentNews writes.

The current fee structure does not apply the same administrative fee to all of an advisors’ accounts on LPL’s strategic asset management platform, according to the publication. Fees on accounts with less than $100,000 can go as high as 0.20%, while those between $1.25 million and $5 million can have a rate as low as 0.05%, InvestmentNews writes.

Under the new system, advisors with $50 million to just under $100 million on the SAM platform will pay 0.05% and those with $100 million or more will pay 0.03%, according to a memo signed by Andy Kalbaugh, LPL’s managing director and divisional president.

LPL has been cutting fees since last March in preparation for the Department of Labor’s fiduciary rule, Reuters reported at the time. The rule, which purports to require retirement account advisors to put clients’ interests first and went into partial effect in June, faces stiff opposition from Republican lawmakers and industry groups. Nonetheless, in July, LPL rolled out a new mutual fund platform meant to adhere to the rule, with lower standardized upfront commissions, according to Financial Planning.

On the other hand, in August, LPL was said to be seeking to renegotiate its terms of agreements with the Office of Supervisory Jurisdictions on its network to LPL’s advantage, Financial Advisor magazine wrote at the time.

Meanwhile, the battle continues for the assets of broker-dealers affiliated with the National Planning Holdings, whose assets LPL bought from Jackson National Life in August. Several of the 3,200 advisors on the NPH network have already gone with other firms. Earlier this month, two firms affiliated with NPH moved to Woodbury Financial, a unit of the Advisor Group.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.
  • To read the FA Magazine article cited in this story, click here.
  • To read the Financial Planning article cited in this story, click here.
  • To read the Reuters article cited in this story, click here.