LPL Financial (LPLA) said Wednesday that it would cut prices and account minimums and roll out a fund-only brokerage IRA option to get its affiliated advisors ready for the expected new fiduciary rule that the Department of Labor should release over the next few weeks.
“While we continue to advocate for a thoughtful resolution to the fiduciary issue — one that preserves investor choice — LPL recognizes that the DOL rule will have implications for financial advisors and investors,” said LPL President Dan Arnold, in a statement.
“The changes announced today position both LPL and our advisors for growth and increased market share, while offering choice and flexibility to serve a range of investors seeking both ongoing and occasional advice,” Arnold said.
The firm says it will drop the pricing of centrally managed platforms, so advisors can offer services “more cost-effectively and grow their practices.”
The broker-dealer said earlier this year that it was getting rid of the research strategist fee and annual IRA maintenance fee in its Model Wealth Portfolios. Now, it plans to “further reduce MWP pricing” next year.
“The change [in 2017] is expected to lower the total cost of accessing quality financial advice for investors in some cases by nearly 30% compared to current pricing,” according to LPL.