The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Here's How LPL's MF Brokerage Biz Is Changing Thanks to the DoL Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, August 23, 2016

Here's How LPL's MF Brokerage Biz Is Changing Thanks to the DoL

Reported by Neil Anderson, Managing Editor

The LPL team is transforming how their affiliated advisors approach commission-based mutual fund business, and it's all thanks to the Department of Labor's fiduciary reg taking effect next year.

Rob Pettman
LPL FInancial
Senior Vice President
No new direct, mutual fund, brokerage business will be allowed at LPL, confirms Rob Pettman, executive vice president of product management, investment planning and solutions at LPL. Pettman spoke this morning in a main stage panel discussion at the 2016 LPL Focus conference at the San Diego Convention Center. Mimi Bock, EVP of client insights & engagement at LPL, moderated the panel, which also included: Peggy Ho, EVP and chief of staff, legal, and head of government relations at LPL; and Dave Reich, EVP and head of retirement partners, high-net-worth solutions and the private trust company.

When it comes to adapting products to the DoL's fiduciary reg, Pettman says, "mutual funds are the hardest cat out of all of them." That, Pettman adds, is thanks to an abundance of share classes and different fees in different fund families and share classes, as well as different distribution models and platforms.

Because of the cutoff of the direct mutual fund brokerage business, Pettman says, LPL is creating mutual-funds-only brokerage accounts. The LPL team is "pursuing a single class with rights of accumulation," a kind of modified A share with a 300 to 350-basis-point load up front and a 25-bps trail.

They're aiming to include up to 15 mutual fund familes (the 15 fund firms that account for a majority of asset flows at LPL) in the new accounts. "A key differentiator", Pettman says, is that the acounts will include no additional sales loads for making exchanges within the account across those fund families.

"It's innovative and we are making good headway there," Pettman says. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. MFDF webinar - Gamification of Securities Trading: Fad or the Future?, April 14
  2. IDC Speaker Series - Diversity, Inclusion, and Implicit Bias: An Interview with Song Richardson, April 14
  3. IDC Virtual Roundtable: New Jersey and Pennsylvania - April 2021, April 15
  4. MFDF In Focus: Board Oversight of Sub-advisers, April 15
  5. The 31st Sub-Advised Funds Forum, Apr 20-21
  6. ETF.com Awards 2020, April 20
  7. IDC Virtual Roundtable: Florida - April 2021, April 20
  8. IMEA Marketing Council Roundtable | Engaging Advisors In a Virtual World, April 21
  9. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  10. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
  11. IDC Virtual Roundtable: Alabama, Georgia, North Carolina, and South Carolina - April 2021, April 22
  12. IDC Webinar: The Future of the Workplace - April 2021, April 23
  13. IDC Virtual Roundtable: Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas - April 2021, April 27
  14. MFDF Case Studies in Fund Oversight — A Virtual Roundtable for Directors, Apr 28-29
  15. IDC Virtual Roundtable: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota - April 2021, April 29
  16. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  17. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  18. ICI 2021 General Membership Meeting - Day 1, May 6
  19. Emerging Manager Forum USA, May 12-14
  20. ICI 2021 General Membership Meeting - Day 2, May 13
  21. 2021 FINRA Annual Conference, May 18-20
  22. IDC Speaker Series - Abby Joseph Cohen: A Conversation About the State of the Global Markets, May 19
  23. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  24. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  25. Irish Funds Online Annual Global Funds Conference 2021, May 19-20
  26. MFDF webinar - Fund Director Compensation: MPI Annual Survey (2021), May 20

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use