LPL Prepares Mutual Fund Platform To Comply With DOL Rule

As the Department of Labor’s fiduciary rule takes effect, the nation’s largest independent broker-dealer will roll out a new mutual fund platform intended to remove conflicts of interest in advisor compensation.

Charlotte-based LPL Financial has announced that beginning in 2018 it will offer a “mutual fund only” (MFO) platform with standardized commissions.

“With this platform, LPL is striving to preserve choice for investors while managing the evolving regulatory environment,” said Rob Pettman, LPL executive vice president, Product and Platform Management, in released comments. “We will be delivering a price competitive solution with the benefit of free exchanges across participating fund companies to help our advisors differentiate their practices in the market and serve a broad range of investors.”

In its announcement, the company said that the new platform is designed to improve the way advisors offer mutual funds in brokerage accounts with participating fund companies, reduce fees for investors and standardize compensation across the industry.

The new platform uses load-waived shares to decouple commissions from products.

from FA News–mutual-fund-only–platform-to-standardize-commssions-33689.html


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