Technology > Investment Platforms > Turnkey Asset Management

Under Pressure, LPL Cuts Fees on Corporate RIA Platform

Your article was successfully shared with the contacts you provided.

LPL Financial says it will drop and simplify costs associated with its corporate RIA platform, referred to as the Strategic Asset Management or SAM offering, next year.

According to a memo received by LPL’s 14,000-plus advisors, the firm will reimburse those who custody $50 million to $100 million in assets — “resulting in a flat 5 basis-point administrative fee on all of their SAM assets.”

Advisors with over $100 million in custodied advisory assets will (via reimbursement) pay 3 basis points on SAM assets for the independent broker-dealer’s administrative services.

“These changes make the administrative and compliance services LPL provides through our corporate RIA platform more valuable than ever,” according to Andy Kalbaugh, national sales director and author of Monday’s memo.

Going forward, the IBD says it will “continue to simplify our billing process by directly charging flat basis point amounts on advisor asset levels.”

Tough Times

The IBD is seeing the departure of some advisors (along with assets and revenue) acquired recently through its purchase of the former National Planning Corp.

Last week, rival Independent Financial Group says 10 offices moved to its platform with some $2 billion in assets under management and $16 million in yearly fees and commissions.

“At the end of the day, the consolidation in the industry and a lack of personalized service has led to the advisor dissatisfaction we’re seeing in our industry today,” said David Fischer, IFG’s chief marketing officer, in a statement.

In its latest quarterly results, LPL said its total advisor count decreased to 14,253, down 124 advisors from 2016 and 3 from the prior period.

— Check out Independent Firms Highlight Key Issues, Growth Trends at Conferences on ThinkAdvisor.