LPL Standardizes Brokers’ Product Commissions

Posted on September 27th, 2016 at 9:29 AM
LPL Standardizes Brokers’ Product Commissions

From the Desk of Jim Eccleston at Eccleston Law LLC:

LPL Financial is changing the way it pays commissions to its brokers when they sell routine investment products like mutual funds and variable annuities.

The move was made because of the final Department of Labor Fiduciary Rule issued in April. The new rule issued by the DOL has made it necessary for LPL to standardize commissions and share classes it pays brokers when they sell all investment products, not just retirement accounts.  LPL also is working on standardizing commissions for alternative investment products like non-traded real estate investment trusts and fixed insurance products.

LPL executives believe that the streamlining of brokerage commissions is important because it eliminates the potential for conflict when brokers sell different annuities at different prices. LPL also plans on cutting prices and easing minimums on some of its internally managed model wealth portfolios in anticipation of the DOL fiduciary rule.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.



Related Attorneys: James J. Eccleston

Tags: Eccleston, James Eccleston, Financial Counsel, Eccleston Law, Eccleston Law LLC, LPL Financial, DOL, commissions, investment products

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