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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
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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.

Stephen Winks

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

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

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


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

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

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


November 9, 2017 — 3:51 PM

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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

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