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
2022: Q2Q1
2021: Q4Q3Q2Q1
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. Nicsa webinar - Luxembourg: The FinTech Gateway to Europ, May 18
  2. MMI webinar - How Wealth Firms Can Attract and Retain the Modern Investor, May 18
  3. ICI webinar - New Research Shows "First-Mover" Is a Universal Investor Response — Not Unique to Open-End Mutual Funds, May 18
  4. MFDF webinar - Mutual Fund Director Compensation: The MPI Annual Survey (2022), May 19
  5. 2022 ICI Leadership Summit, May 25-26
  6. ALFI Roadshow to New York, May 25
  7. 2022 IDC Fund Directors Workshop, May 26
  8. Irish Funds Annual Global Funds Conference 2022, May 30-31
  9. WealthManagement Edge, May 31 - June 3
  10. MFDF 2022 Fund Governance and Regulatory Insights Conference, Jun 8-9
  11. 28th annual Expect Miracles East Coast Classic, June 9
  12. 2022 Sohn Investment Conference, June 9
  13. IDC webinar - Cybersecurity for Fund Boards: The Current Landscape, June 9
  14. MMI webinar - Driving Business Value with Artificial Intelligence & Data, June 15
  15. MFDF webinar - Key Takeaways From Morningstar's 2021 Annual Fund Fee Study, June 16
  16. MFDF Director Discussion Series - Open Forum (Chicago), June 21
  17. 2022 MMI Emerging Asset Managers Forum, June 23
  18. MFDF In Focus: Capitol Hill, A Conversation with Congressman Bryan Steil, June 28
  19. Financial Planning INVEST, Jun 28-29
  20. MFDF webinar - Differentiating Mutual-Fund-to-ETF Conversions, July 19
  21. MFDF Director Discussion Series - Open Forum (New York), July 20
  22. 2022 MMI Distribution Leadership Forum, Jul 20-21
  23. MFDF webinar - Fund Boards' Oversight of Investment Performance, July 28
  24. MFDF webinar - Performance, Perception and Manager Selection, September 14
  25. 2022 ICI Tax and Accounting Conference, Sep 18-21
  26. 5th annual Expect Miracles Atlantic Coast Classic, October 3

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use