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With DOL fiduciary rule looming, LPL cuts prices on model portfolios

March 18, 2016

Firm expects the rule to be a catalyst for more advisory business and wants to help its advisers compete

Mar 16, 2016 @ 12:38 pm | By Bruce Kelly | Investment News

Acknowledging the inevitability of the Department of Labor’s new fiduciary standard rule, LPL Financial on Wednesday said it was cutting prices and easing minimums on some of its model wealth portfolios.

LPL’s moves include price cuts and lower account minimums for its in-house, centrally managed model portfolios. LPL’s internal research team, led by chief investment officer Burt White, creates the portfolios. The price reductions could be as much as 30% and will take effect in 2017. The firm had previously announced the elimination of the research strategist fee and the annual IRA maintenance fee for these model wealth portfolios.

Those price cuts are an about-face for the company. In 2014, LPL raised prices on the same portfolios by 15 to 20 basis points for new accounts.

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John E. Moriarty, ChFC
December 2015
February 3, 2016

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