LPL Financial, a retail investment advisory firm and independent broker-dealer, has announced that financial advisers will now be able to take advantage of 45 per cent lower transaction charges from several leading providers of exchange-traded funds (ETFs).
The products are offered on LPL’s Strategic Asset Management (SAM) and Strategic Wealth Management (SWM) platforms, rep-managed platforms designed for advisers leveraging the firm’s corporate, hybrid or RIA-only platforms.
ETF transaction charges will drop from USD9.00 to USD4.95 for State Street, Invesco and WisdomTree, and LPL is pursuing similar partnerships with other sponsors. The new pricing goes into effect during the second half of the year. The reduction will be offered at no cost to advisors or their clients, and will apply to all SAM and SWM transactions of the participating sponsors.
“We are committed to helping our advisors thrive in today’s complex and challenging business environment. We can do that by using our scale to provide competitive, industry-leading programs that give advisors choice and flexibility to address the needs of their clients and their business,” says Rob Pettman, LPL Financial executive vice president, Products and Platforms. “The firm remains committed to leveraging our scale to invest in advisors’ businesses with price reductions and new capabilities. ETFs are another step in the journey to expand our breadth of solutions and help advisors remain competitive in the marketplace.”
LPL has made several enhancements to its RIA platforms over the last year, including introducing a mutual fund no-transaction fee (NTF) network to its SWM platform. PIMCO was added to the network in April, joining another 65 sponsors, including AllianceBernstein, BlackRock, Columbia, Invesco, JP Morgan, John Hancock, Legg Mason, MFS, Natixis, Oppenheimer and Putnam. And in January, fees were lowered for advisors with USD25 million to USD50 million in assets custodied on the SAM platform, reduced and simplified to a flat eight basis point administrative fee.