LPL Financial Raising Fees on BrokersPosted by in Blog on November 17, 2011
LPL Financial LLC is going to have to raise some fees for its brokers next year. InvestmentNews.com reports that the firm’s fee increases will cost each of their representatives an average of $1,050 starting on New Year’s Day 2012.
InvestmentNews.com said that LPL informed the 12,799 brokers that it would increase fees in 2012 “in three categories, including errors-and-omissions insurance.” The most controversial fee added is an additional $50 per month, or a 40% increase, for an “adviser affiliation fee,” raising the charge up to $175 a month. This could result in “$13.4 million in extra revenue for the firm next year,” the article notes.
One adviser complained to InvestmentNews.com about the affiliation fee. “I don’t get it,” an LPL broker said. “I understand [an increase] for errors-and-omissions insurance, but it’s another $50 per month to be affiliated with LPL.”
Bill Dwyer, who is LPL’s president of national sales, defended the charge. “That fee hasn’t gone up since 1984, and along the way, we’ve built up business tremendously.” He said that over the years,
“LPL has raised payouts and passed through some costs, but we believe we have the most effective pricing model in the business.”
LPL is also lowering some charges, such as the Strategic Asset Management charge, which is being lowered from $15 per transaction to $9.
Written By Lisa Swan