Legal Disclosures

Sponsorship Programs

At LPL Financial LLC ("LPL Financial"), we receive compensation from mutual fund families, variable and group annuity issuers, alternative investment companies, and retirement plan product sponsors that are available to our brokerage and advisory customers. These payments are made in connection with programs that support our marketing and sales force education and training efforts, such as our annual national sales and education conference and other conferences (referred to here as "Sponsorship Programs").The mutual fund families, retirement plan product sponsors, alternative investment sponsors, and variable and fixed annuity issuers that participate in the Sponsorship Programs are listed below. LPL Financial advisors do not receive any part of these payments. In some cases, sponsors may pay additional marketing payments to LPL Financial and/or LPL Financial advisors to cover fees to attend conferences or reimbursement of expenses for workshops or seminars. We believe that these programs do not compromise the advice your financial advisor gives you.

Mutual Funds and Variable Annuities

The payments made under the Sponsorship Programs are calculated based upon the assets and/or sales with the participating sponsor, including any 529 college savings plan assets. LPL Financial may receive compensation of up to 0.15 percent of the assets held at the mutual fund family or participating variable annuity sponsor. For example, if you held $10,000 dollars with a participating sponsor for one year, LPL Financial could receive a payment of up to $15 from that sponsor.  In lieu of these payments, LPL Financial may receive up to 0.25 percent on sales of such products. Product sponsors may also incur up to a $10 per trade ticket charge for purchases in mutual funds.

Mutual Fund Sponsors

  • Alliance Bernstein
  • Allianz Global Investors
  • American Beacon
  • American Century
  • American Funds Distributors, Inc.
  • BlackRock
  • Calamos
  • Calvert Investments
  • Cohen & Steers Securities, Inc.
  • Columbia Management
  • Compass
  • Delaware Investments
  • Dreyfus
  • Dunham
  • DWS Investments
  • Eaton Vance
  • Empiric Funds, Inc.
  • Federated
  • Fidelity Advisor Funds
  • First Eagle
  • Forward Funds
  • Franklin Templeton Investments
  • Fred Alger & Company, Inc.
  • Goldman, Sachs & Co.
  • Guardian Investor Services, LLC / RS Investments
  • Guggenheim (formerly known as Rydex SGI)
  • Hartford Life Distributors
  • Highmark Capital Management, Inc.
  • ICON Distributors, Inc.
  • ING Funds
  • Invesco
  • Ivy Funds Distributor, Inc.
  • Janus Capital Management LLC
  • John Hancock Funds
  • JP Morgan Investment Management
  • Lazard Asset Management
  • Legg Mason Partners
  • Lord Abbett
  • Mainstay
  • Managers Investment Group
  • MFS
  • NATIXIS
  • Neuberger Berman Management, Inc.
  • Nuveen
  • Oppenheimer Funds
  • Pacific Life
  • PIMCO
  • Pioneer Investments
  • Principal Funds
  • Prudential
  • Putnam Investments
  • Russell Invesments
  • Sentinel Financial Services Company
  • SunAmerica
  • Thornburg Investment Management, Inc.
  • Touchstone Investments
  • Transamerica Capital, Inc.
  • Transparent Value
  • Van Eck Securities Corporation
  • Virtus Investments
  • Wells Fargo Funds Management, LLC
 

When adding mutual funds to LPL Financial’s advisory and brokerage platforms, mutual fund product sponsors may also pay a one-time setup fee of up to $5,000 per mutual fund. Additionally, new fund families may be charged an initial $15,000 setup fee.

LPL Financial also assesses financial advisors a $30 ticket charge for automated purchases of mutual funds. Generally, the mutual fund families that participate in the Sponsorship Programs subsidize these ticket charges. For companies indicated on the chart above, the ticket charge is waived completely. Every mutual fund offered by LPL Financial also may be purchased without a ticket charge by processing the transaction with a check and application sent directly to the mutual fund company.

American Funds Distributors, Inc.

American Funds Distributors, Inc. may provide compensation to LPL in accordance with the terms of our letter of understanding.  These payments are made at the discretion of American Funds Distributors, Inc. and will vary in any given year, but will not exceed the sum of (a) 0.10 percent of the previous year's American Funds sales by LPL and (b) 0.02 percent of the assets of the American Funds.  The actual payment to LPL in any given year will depend on LPL's sales, assets and redemption rates, and our relationship with American Funds.

Variable Annuity Sponsors

  • Allianz Life Financial Services, LLC
  • AXA Distributors, LLC
  • Guardian Investor Services
  • Hartford Life Distributors
  • ING USA Annuity and Life Insurance Company
  • Integrity Life Insurance Company
  • Jackson National Life Insurance Company
  • John Hancock Life Insurance Company
  • Lincoln Financial Distributors, Inc.
  • MetLife Investors Insurance Company
  • Nationwide Life Insurance Company
  • Ohio National Financial Services / National Security Life 
  • Pacific Life Insurance Company
  • Penn Mutual
  • Pioneer Investments
  • Protective Life Insurance Company
  • Prudential Annuities Distributors, Inc.
  • RiverSource Life Insurance Company
  • Sun Life Financial Distributors, Inc.
  • SunAmerica Life Assurance Company
  • Symetra Life Insurance Company
  • Transamerica Capital, Inc. 

Fixed Annuity Compensation Disclosure

At LPL Financial, we receive compensation from issuers of fixed annuities that are available to our brokerage customers. The compensation includes commissions and trailing commissions, and may include payments for administrative services that we provide and payments made in connection with our marketing and sales-force education and training efforts, including our annual national sales and education conference and other conferences. The payments made by fixed annuity sponsors include payments that are based on sales or that are based upon assets held at the sponsor, excluding assets held in fee-based advisory programs at LPL Financial. LPL Financial may receive compensation of up to 0.25 percent of the assets held at the fixed annuity sponsor. For example, if you held $10,000 dollars with a sponsor for one year, LPL Financial could receive a payment of up to $25 from that sponsor. These payments do not affect your premiums, and LPL Financial advisors do not receive any portion of these payments. Commissions paid by product sponsors to financial advisors for the sale of fixed annuity products may vary among financial advisors.

Fixed Annuity Sponsors

  • Allianz
  • Allstate Life Insurance Company
  • American National Insurance Company
  • AXA Distributors, LLC 
  • Brooke Life Insurance Company
  • Genworth Life and Annuity Insurance Company
  • Great American Life
  • ING USA Annuity and Life Insurance Company 
  • Jackson National Life Insurance Company
  • John Hancock
  • MetLife Investors Distribution Company
  • New York Life Insurance and Annuity Corporation
  • Ohio National Financial Services
  • Pacific Life Insurance Company 
  • Principal Life Insurance Company
  • Protective Life Insurance Company
  • Sun Life
  • Symetra Life Insurance Company
  • Western & Southern Financial Group, Inc. / Integrity 
  • Western National

Retirement Plan Product Sponsors

LPL Financial may receive marketing and educational support payments of up to $225,000 from retirement plan product sponsors to assist training and educating financial advisors across LPL Financial’s advisory and brokerage platforms. Such compensation is not tied to the sales of any products. LPL Financial’s advisors do not receive any portion of these payments.

  • ADP
  • American Century
  • American Funds Distributors, Inc.
  • Ascensus
  • AUL/One America
  • AXA Distributors LLC
  • BlackRock
  • BNY Mellon/Dreyfus
  • Columbia Management
  • CPI
  • Eaton Vance
  • Expert Plan
  • Fidelity Advisor Funds
  • Franklin Templeton Investments
  • Goldman Sachs & Co.
  • Great West
  • Guardian Investor Services LLC
  • Hartford Life Distributors
  • ING Retirement
  • ING Funds
  • Invesco
  • Ivy Funds Distributors, Inc.
  • Janus Capital Management LLC
  • John Hancock
  • JP Morgan Investment Management
  • Legg Mason Partners
  • Lincoln Financial Distributors
  • Lord Abbott
  • M&I Institutional Trust Services
  • Mainstay
  • Mass Mutual
  • MFS
  • Mutual of Omaha
  • Nationwide
  • Natixis
  • Neuberger Berman
  • Nuveen
  • Oppenheimer
  • Paradigm Capital
  • PIMCO
  • Pioneer
  • Principal
  • Prudential
  • Putnam
  • Ridgeworth
  • Standard Retirement Services
  • TIAA Cref
  • Transamerica Retirement / Diversified Investors Securities Corporation
  • Wells Fargo

Alternative Investment Sponsors

LPL Financial may receive compensation of up to 0.60 percent of the assets held at the alternative investment sponsors. LPL Financial advisors do not receive any portion of this payment.

  • ACAP Strategic Fund
  •  Altegris
  • Atlas Energy
  • Campbell and Company
  • Central Park Group
  • Chadwick
  • CION Investment Corporation
  • CNL
  • Cole Capital
  • Cypress
  • Dearborn Capital Management
  • Dunbar Capital
  • Franklin Square
  • Gorelick Bros.
  • Gottex Fund Management
  • GrantPark
  • Hatteras
  • Macquarie Group
  • Octavus
  • Skybridge
  • Steben and Company
  • Strategic Capital Solutions (SCS)

Life Insurance Compensation Disclosure

At LPL Financial, we receive compensation from issuers of life insurance contracts (universal, variable universal, whole life, and term) that are available to our brokerage customers. The compensation includes commissions and trailing commissions, and may include payments for administrative services that we provide and payments made in connection with our marketing and sales-force education and training efforts, including our annual national sales and education conference and other conferences. LPL Financial may receive compensation in a range of 5 to 10 percent of first-year commissionable premiums for marketing, training, and supporting distribution of life products offered through LPL Financial as a broker/dealer, and of 10 - 25 percent of first-year commissionable premiums to support the additional case-management services that LPL Financial provides for products offered through the LPL Financial general agency. LPL Financial may also receive additional compensation from carriers whose aggregate sales exceed premium thresholds specified in selling agreements. These payments do not affect your premiums, and LPL Financial advisors do not receive any portion of these payments.

Variable Universal Life, Fixed Life, and Long Term Care & Disability Insurance Carriers

  • Allstate Life Insurance Company
  • Allstate Life Insurance Company of New York
  • American General
  • American General Life Insurance Company of Delaware
  • American National Insurance Company
  • Ameritas (formerly known as Union Central)
  • Assurity Life
  • Aviva Life and Annuity
  • Aviva Life and Annuity Company of New York
  • AXA Equitable Life Insurance Company
  • First Symetra National Life Ins. Co. of New York
  • ForeThought
  • General American Life
  • Genworth Life Insurance Co. of NY
  • Genworth Life Insurance Company
  • Golden Rule
  • Hartford
  • ING
  • John Hancock
  • John Hancock NY
  • Legal and General America (Banner & William Penn)
  • Liberty Life Assurance Company of Boston
  • Lincoln Benefit
  • Lincoln Life & Ann of NY
  • Lincoln National Life Insurance Company
  • MassMutual
  • MetLife DI
  • Metropolitan Life Insurance Company
  • Mutual of Omaha (United of Omaha)
  • Nationwide Life
  • New York Life
  • Ohio National Life
  • OneAmerica
  • Pacific Life Ins
  • Penn Mutual Life Ins
  • Principal Life
  • Protective Life Insurance
  • Prudential Life Insurance Co.
  • Reliastar Corporation
  • Reliastar Life of NY
  • SBLI Mutual Life Insurance Company, Inc.
  • Security Life of Denver
  • Standard Insurance Company
  • State Life Insurance Co.
  • Symetra Life Insurance Co.
  • Transamerica Life Insurance Company
  • United Life Insurance Company
  • The United States Life Insurance Company in the City of New York
  • Vantis Life Insurance Company
  • West Coast Life
  • Western & Southern Financial Group
  • William Penn

Additional Compensation to LPL Financial

Money Market Mutual Fund Automatic Cash Sweep Program

For accounts that are ineligible for the Insured Cash Account ("ICA") program as the automatic cash sweep vehicle, LPL Financial offers an automatic cash sweep money market mutual fund program. The money market mutual fund automatic cash sweep program sweeps uninvested cash daily into taxable and tax-exempt money market funds offered by DWS Scudder Investments, J.P. Morgan Asset Management, and Federated Services Company. LPL Financial may receive compensation of up to 0.16 percent of the assets invested in DWS Scudder Investments and J.P. Morgan Asset Management money market funds and up to 0.35 percent of the assets invested in Federated Services Company money market funds. LPL Financial advisors do not receive any portion of these payments.

High Cash Balance Options Program

LPL Financial also offers a High Cash Balance Options ("HCBO") program for ICA-eligible accounts with large amounts of cash to invest (non-ICA eligible accounts may participate on an exception basis).  ICA-eligible accounts with a $250,000 minimum in cash for investment may purchase any one of four money market funds and retain the ICA sweep on the account (the $250,000 minimum applies to the amount of the cash trade).  LPL Financial may receive compensation of up to 0.06 percent of the assets invested in the HCBO program money market funds.  LPL Financial advisors do not receive any portion of these payments.

Optimum Funds

LPL Financial serves as a sub-services agent to the Optimum Funds, providing sub-accounting and shareholder recordkeeping with respect to Optimum Fund shares. LPL Financial receives compensation of 0.25 percent on assets held at LPL Financial for these services. As an investment consultant to Delaware Investments, the investment advisor to the Optimum Funds, LPL Financial also provides investment consulting services to the advisor of the Optimum Funds. As compensation for these services, LPL Financial receives an investment consulting fee of up to 0.25 percent on all Optimum Fund assets. LPL Financial advisors do not receive any portion of these payments. For more information regarding our investment advisory activities, please consult the firm's Form ADV.

Strategic Wealth Management (SWM) Program

For LPL Financial’s registered investment advisor (RIA) custodial platform (SWM), LPL Financial may receive additional compensation of up to 0.40 (exclusive of 12b-1 payments) percent of mutual fund assets held with the sponsor. Fund companies that pay LPL Financial additional compensation payments may receive reduced ticket charges for their funds on the SWM platform. RIAs using the SWM platform do not receive any part of these payments.

Third-Party Investment Advisors

LPL Financial may enter into marketing services agreements with independent third-party investment advisors, pursuant to which LPL Financial provides marketing services on behalf of the third-party investment advisor and receives compensation for such services. Third-party investment advisors that have engaged LPL Financial to provide such marketing services have greater access to LPL Financial advisors. LPL Financial advisors do not share in this marketing services compensation. Also, in some cases, the third-party investment advisors may pay additional marketing payments to LPL Financial and/or LPL Financial advisors to cover fees to attend conferences or reimbursement of expenses for workshops or seminars.

Big Brothers Big Sisters

Big Brothers Big Sisters is the nation's largest donor and volunteer supported mentoring network. LPL Financial has been a long-time supporter and donor to Big Brothers Big Sisters, providing financial and volunteer support to Big Brothers Big Sisters of Massachusetts Bay, Big Brothers Big Sisters of San Diego County, and Big Brothers Big Sisters of Greater Charlotte. The charity accepts contributions from a variety of sources, including individuals, private foundations, government programs, community funds, and corporations. Some of these corporate donors include product sponsors who also participate in our marketing and sales-force education programs. Contributing sponsors do not receive any gifts or services from the contribution.

Invest in Others Charitable Foundation, Inc.

In 2006, LPL Financial created a public charity to support the philanthropic efforts of financial advisors across the industry, including advisors with LPL Financial. The charity accepts contributions from a variety of industry organizations, including product sponsors. Some contributing sponsors also participate in our marketing and sales-force education programs.  Contributing sponsors do not receive any gifts or services from the contribution.