LPL Financial to Charge Advisors 5 Basis Points for Mutual Fund Accounts

LPL Financial Holdings is introducing a new five basis point annual fee for advisors' mutual fund accounts stored or held at outside money managers. This change affects independent broker advisors who use a traditional and popular method called "direct to fund." The new fee could cost some advisors thousands of dollars per year, with a large practice potentially losing $500,000 annually. Advisors often complain about such charges, which can attract competitors and recruiters. LPL's Chief Growth Officer said the fee will allow the firm to maintain support for direct mutual fund business and invest in enhancements.