LPL Boosts Its E&O, Compliance, And Other Fees Hot
LPL has reportedly irritated some of its nearly 13,000 reps by boosting its "affiliation fee" to $2,100 a year -- a $600 annual increase effective in the near year.
That fee is somewhat vague and seems to simply cover LPL's administrative costs.
Other firms consider their take of an advisor's production to be sufficient in that respect, but LPL is the king of its channel, so as yet few have complained.
In addition, LPL is increasing its E&O insurance charge per rep by 10% and its compliance fees by a big 50%.
Starting next year, each LPL affiliate will pay $2,750 and $600 a year, respectively, in these increasingly expensive service areas.
The question is whether everybody in the industry is seeing their compliance costs jump 50%. Are smaller players budgeting even more to cover their regulatory burden?
Or is LPL's scale not actually earning their reps any price breaks here?
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