LPL Financial has made changes to product sales ahead of the upcoming Department of Labor (DOL) fiduciary rule.
The firm has announced that it will halt purchases of no-load mutual funds in brokerage accounts due to the difficulty of offering similar products at different compensation levels under the rule.
The fiduciary rule calls for standardization of compensation within each product type.
The broker-dealer will additionally introduce level compensation on fixed annuities and unit investment trusts and plans to create an account solely for mutual funds, as well as develop a new advisory platform, called Guided Wealth Portfolios, which will allow advisors to pull on digital investing capabilities.
‘As a result of our commitment and preparation, LPL today announced to its advisors changes that will be in effect as of June 9 in order to align to the new Department of Labor rule,’ said a spokeswoman for LPL.
Over the last year, the firm has lowered fees and account minimums as part of efforts to comply with the rule and normalized compensation through its product offerings in an effort to minimize conflict of interest.
In February, when it became unclear if and when the DOL fiduciary rule would be implemented, the firm said: ‘LPL continues to believe a best interest standard is appropriate for our industry… we also believe that a consistent approach to disclosure, compensation and mitigation of conflicts is the right path forward for our industry.’