LPL Financial clips wings of 20 top fund companies by asserting itself as 'gatekeeper' on newly launched DOL-proof 3.5% flat-commission mutual fund superstore

Using Labor Department as leverage, LPL cuts itself in as middleman between branded fund giants -- including Fidelity, Legg Mason and Putnam -- and its advisors' clients -- in exchange for semi-exclusive shelf space positioning

Author By Lisa Shidler August 4, 2017 at 10:04 PM

7 Comments

Robert Pettman: We're essentially setting up a gating mechanism. The cash is going through the money market fund and that’s why it’s traded with waived. load shares.

RIA Compliance

Scott Smith

Bill Hamm

Goldman Sachs

Cerulli

Independent Financial Partners

LPL Financial

Robert Pettman

Stephen Winks

August 5, 2017 — 3:27 PM

For advisors who wish to work in a fiduciary construct establishing professional standing in advisory services, mimicking institutional advisors with overlay management, eliminates retail pricing and secures better real time data access. This is a most significant competitive edge in cost and professional standing. SCW

Shelly Gersrd

August 6, 2017 — 6:51 PM

How does LPL handle the starting investor that is age 23 wants to start a Roth IRA with a mutual Fund company and put $100 a month into it? I've been told that at Edward Jones you cannot do tjis. Must have $5,000 to start. I believe this new DOL hurts the new, young or small investor. Who is looking out for them?

Stephen Winks

August 7, 2017 — 2:29 PM

Shelly, The brokerage industry is opposed to fiduciary duty and the professional standing of the broker in advisory services. I would suggest you talk with an RIA like Edelman Financial, CapTrust, Savant Capital, or Evansky, Brown and Katz. that support expert Fiduciary Duty and professional standing in advisory services. SCW

rON SMITH

August 8, 2017 — 8:58 AM

Financial specialists can change their states of mind towards chance intermittently. Counsels who meet with speculators as of now working with a free money related organizer should address whether the well being of the financial specialist's decisions is really diminishing his or her chances to expand their portfolio's esteem. <a href="https://www.joinsovereign.com/" rel="nofollow">https://www.joinsovereign.com/</a>

Charles Hendrickson, CFA

September 7, 2017 — 2:37 PM

As somebody who works for a fee-only fiduciary RIA, I can't even believe how awful the fee logic is here. Why would any client do business with a Brokerage firm...unless they don't know any better.

Stephen Winks

September 7, 2017 — 9:04 PM

The DOL proof assertion does not specifically address the fiduciary duties entailed in the broker acting in a fiduciary capacity, only pricing. As for pricing, the use of "retail" products is still very expensive and does not meet a prudent expert standard for advisory services. LPL is not including fiduciary liability in its calculus when describing its new strategy as DOL proof. SCW

ConnieWebberHunter

November 9, 2017 — 3:51 PM

Interesting.

Related Moves

Christa Carone, an ex-Fidelity and Xerox marketing whiz, steps onto a slippery slope at LPL with a daunting task -- to consolidate a NASCAR size brand portfolio... or not?

With no CMO since August, the chief marketing officer will play catch up for a company still hungry to buy more branded B2B and B2C players.

April 2, 2024 at 1:28 AM

Breen Blitz: Mercer seals Vanguard OCIO buy • Goldman[Sachs] & Cohen split • PIMCO joins ETF shift • AdvisorEngine-Schwab bond grows • Ellevest milestone • Lonsdale nets new chief • Fidelity leaks data & staff move • Collation wins RIAs • Justin Wisz returns as investor • LPL nets CMO & Tifin a CEO

OCIO sale to Mercer may be Buckley's last act • Goldman's retail lead departs • PIMCO latest to convert mutual funds • Software firm upgrades Schwab data • Krawcheck preaches wisdom of naps • Fidelity hit by data snafu, but D&I on track • New Lonsdale tech shop imminent • Vestorly founder now funding start-ups • Eight month wait for CMO ends at LPL.

March 21, 2024 at 4:41 AM

Goldman Sachs-Creative Planning deal is bleeding defectors -- 16 more last week, report says -- auguring a 'potential disaster,' analysts warn

Dozens of former 'United Capital' advisors are fleeing at once, but Peter Mallouk is still battling to keep them, and Goldman Sachs may play legal hardball, sources say.

October 4, 2023 at 2:16 AM

LPL makes 'Sixth Sigma black belt' ex-wirehouse counsel its chief legal officer, right after purchasing another full service broker. LPL says there is 'no connection,' and she was poached from Google

The Fort Mill S.C. broker dealer added Crown Capital Securities' captive brokers in Orange County, and is hiring Althea Brown, fresh off 11 years at Google

July 28, 2023 at 3:11 AM

See more related moves

Mentioned in this article:

LPL Financial
RIA-Friendly Broker-Dealer, RIA Welcoming Breakaways, Advisory Firm
Top Executive: Dan Arnold

Independent Financial Partners
RIA Serving Other RIAs
Top Executive: William Hamm

LPL Financial clips wings of 20 top fund companies by asserting itself as 'gatekeeper' on newly launched DOL-proof 3.5% flat-commission mutual fund superstore

Stephen Winks

Shelly Gersrd

Stephen Winks

rON SMITH

Charles Hendrickson, CFA

Stephen Winks

ConnieWebberHunter

Related Moves

April 2, 2024 at 1:28 AM

March 21, 2024 at 4:41 AM

October 4, 2023 at 2:16 AM

July 28, 2023 at 3:11 AM

RIABiz Directory

White Paper Postings

Special Sections

Common Tags

Recent Articles

Popular Writers

RIABiz

Directory

Archives

Connect