Louis Diamond Quoted
By Lisa Shidler
Facing the prospect of reps with tens of billions of managed assets marching for the door, LPL Financial is slashing fees.
Last week, the Fort Mill, S.C.-based independent broker-dealer announced it was reducing its administrative fee to a flat eight basis points for advisors using the corporate platform who manage $25 million to $50 million amid other inducements.
In fact, the price cut may have been dictated by the OSJs that use LPL, says Louis Diamond, New York-based principal of Diamond Consultants, in an email.
“LPL is listening to their large enterprise groups and hybrids and they were probably given an ultimatum by these groups. They saw the [IFP] leaving and they probably figured there are a few others that may be coming down the pike and they decided to try and keep the business,” Diamond says.