LPL Financial announced several changes Wednesday to help its advisors deal with the upcoming Department of Labor fiduciary rule and shift toward a fee-based business model, including lower pricing of its centrally managed platforms and lower account minimums in its advisory platform.
Earlier this year, the independent broker/dealer said it would do away with its LPL Research strategist and annual IRA maintenance fees in its “Model Wealth Portfolios” advisory platform. The firm will cut pricing even more in 2017.
The firm expects the price cuts will allow advisors to reach more investors and lower costs by nearly 30 percent.
"We believe that retirement investors will continue to benefit from a brokerage relationship and that the need for a brokerage offering will continue if these relationships can be supported under the DOL rule,” LPL President Dan Arnold said in a statement.
Effective later this year, account minimums within its “Optimum Market Portfolios” advisory platform will decrease from $15,000 to $10,000. The firm already eliminated the IRA maintenance fee within this platform.
LPL will also launch a mutual fund-only brokerage IRA offering, allowing the firm to continue to support mutual funds previously held directly with manufacturers.
Advisors can also get specialized practice management support to help them cope with the rule’s impact, including licensing assistance and business analysis. The firm will also implement certain operational changes to make it easier for clients and their advisors to convert brokerage accounts into advisory accounts.