SAM SWM Hybrid Corporate

LPL Reduces Pricing Across Corporate, Hybrid RIA Platforms

April 26, 2018

LPL Financial

LPL Financial announced today that it will roll out platform enhancements to both its corporate and hybrid advisory Registered Investment Advisor (RIA) platforms in the coming year. A mutual fund no-transaction-fee (NTF) network will be added to LPL’s Strategic Wealth Management (SWM) platform, and the company will reduce pricing on its Strategic Asset Management (SAM) advisory platform.

LPL Financial announced today that it will roll out platform enhancements to both its corporate and hybrid advisory Registered Investment Advisor (RIA) platforms in the coming year. A mutual fund no-transaction-fee (NTF) network will be added to LPL’s Strategic Wealth Management (SWM) platform, and the company will reduce pricing on its Strategic Asset Management (SAM) advisory platform.

“We are excited to be able to leverage our scale to invest in our advisors’ business in ways we believe will add value across affiliation models,” said Andy Kalbaugh, LPL managing director and divisional president, National Sales and Consulting. “These investments to both our corporate and hybrid RIA platforms will help advisors further differentiate their practices by having more choice and flexibility to meet the needs of their clients and their businesses.”

In July, LPL expects to launch the NTF network on its SWM platform, offering a share class of mutual funds from selected mutual fund sponsors. Several companies are currently finalizing agreements for inclusion in the launch, including AB Funds, Columbia Threadneedle, J.P. Morgan , Legg Mason, MFS, Natixis, John Hancock, Oppenheimer and Putnam. Additional sponsors will be added in waves.

In addition, next January, the firm expects to extend its reduced pricing to more advisors on its corporate advisory platform. LPL will charge a flat eight basis point administrative fee to advisors with $25 million to $50 million in assets custodied on the SAM platform.  The change is intended to make it possible for more advisors to take advantage of flat basis point pricing, which the firm has already applied to those advisors with $50 million or more in custodied advisory assets on the SAM platform.

Amounts in mutual funds are subject to fluctuations in value and market risk. Shares, when redeemed, may be worth more or less than their original cost. 

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Forward-Looking Statements

Statements in this article regarding LPL Financial Holdings Inc.'s (together with its subsidiaries, including LPL Financial LLC, the "Company") future advisory platform enhancements and pricing changes, including expected future benefits to financial advisors’ and institutions’ business growth, and the Company's related plans and future service offerings and pricing, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the Company's plans, intentions and expectations as of April 26, 2018. Forward-looking statements are not guarantees that results, plans, intentions or expectations expressed or implied by the Company will be achieved. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause levels of activity or the timing of events, to be materially different than those expressed or implied by forward-looking statements. In particular, the Company can provide no assurance that the proposed platform and pricing changes will ultimately provide the anticipated benefits or functionality, be widely implemented and/or adopted by financial advisors or institutions, generate efficiencies and/or cost savings for, complement and/or or result in the expansion of the business of financial advisors or institutions, or that the current and/or future clients of such financial advisors or institution will widely utilize the platform or pricing changes. Important factors that could cause or contribute to such differences include: changes in general economic and financial market conditions, including retail investor sentiment; whether the NTF platform adequately addresses the needs of advisors and their clients; effects of competition in the financial services industry, including with regard to similar platforms and/or solutions and pricing; the effect of current, pending and future legislation, regulation and regulatory actions; the Company's success in developing and maintaining the NTF platform; and the other factors set forth in Part I, "Item 1A. Risk Factors" in the Company's 2017 Annual Report on Form 10-K and any subsequent SEC filing. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this article, even if its estimates change, and you should not rely on those statements as representing the Company's views as of any date subsequent to the date of April 26, 2018.