LPL Financial Payouts and Pricing

[Pages:6]Payouts and Pricing

Quick Reference Guide

as of January 2020

Representative Payout Rate

Security Type Mutual Funds Alternative Investments Variable Annuities Unit Investment Trusts (UITs) Fixed Income Stocks, Options, ETPs, Closed-End Funds

LPL Financial Payout Starting At: 90% 90% 90% 90% 90%* 90%**

Commissions on stock and option trades are based on the published commission schedule and may be discounted up to 50%. The minimum commission is $30. Markup/ markdown on fixed income trades varies with the particular product and length of maturity.

*Excluding any LPL markup/markdown

**After the application of an LPL trade surcharge of 16.6%

Production Bonuses

Individual $100,000 $200,000 $500,000 $750,000 $1,000,000 $2,000,000 $3,000,000 $4,000,000 Branch $300,000 $500,000 $1,000,000 $3,000,000 $4,000,000 $5,000,000

Bonus 1% 2% 3% 4% 5% 6% 7% 8% Bonus 1% 2% 3% 4% 5% 6%

Advisory Payout Rate

Type

Payout

Strategic Asset Management (SAM)

SAM I: 90% of advisory fee, and net of administrative fee (client pays transaction charges) SAM II: 90% of advisory fee, and net of administrative fee, and transaction charges (advisor pays transaction charges)

Manager Select

90% of net advisory fee, after deduction of administrative fee, custody and clearing fee, and separate account manager fee

Guided Wealth Portfolios (GWP)

Optimum Market Portfolios (OMP)

Model Wealth Portfolios (MWP)

Personal Wealth Portfolios (PWP)

90% of advisor fee

90% of total advisory fee

90% of advisor fee

90% of net advisory fee, after deduction of administrative fee, custody and clearing fee, overlay portfolio management fee, and separate account manager fee

Affiliation Costs

Annual

Errors and Omissions Insurance

$3,650, plus an additional fee of $600 if a registered representative is engaged in an approved outside business activity of life or health insurance or as a registered investment advisor (RIA)

Compliance Inspection Fee FINRA Renewal State Renewal Monthly Resource Fee Bonding Fee Core Technology Fee Miscellaneous SIPC Assessment FINRA Assessment

$300 ? $600

$75 $75

$175 $10 $75

0.1875% of gross commissions 0.23% of gross commissions

1

Payouts and Pricing

Strategic Asset Management (SAM)

Advisory Charges

Equities/ETFs/ClosedEnd Funds

Options

$0 ? $9 online $25 online

Fixed Income

$50 online or phone

UITs

$35 online

Mutual Funds FBVAs

$0 ? $26.50 (depending on fund family) online

$50 online

SAM Fees

Minimum Account Size $25,000

Annual Account Fee

Minimum: 0.50% Maximum: 2.50%

AI Admin Fee

$35 per position/per account/per year ($100 annual max)

Alternative Investment Product Processing Fee

Custody and Clearing

$50 per transaction None

Separate Account Manager Fee

None

Overlay Portfolio Management Fee

Program Fee

None None

Strategist Fee

None

Small Account Fee

$10 per quarter if under $100,000

Flat SAM Admin Fees*

Effective January 1, 2019, individual advisors with more than $25M in LPL custodied advisory assets under management (AUM) will be able to take advantage of flat basis point pricing transaction charges.

Advisory AUM (in all fee-based AUM)

Annual Fee

$25,000,000+ $50,000,000+ $100,000,000+ SAM Admin Fees Account Size $25,000 ? $99,999 $100,000 ? $249,999 $250,000 ? $499,999 $500,000 ? $749,999 $750,000 ? $1,249,999 $1,250,000 ? $4,999,999 $5,000,000 ? $24,999,999 $25,000,000+ SAM Ticket Charges Equities/ETFs Mutual Funds: Fully Participating Mutual Funds: Partial Participating Mutual Funds: Non-Participating Bonds UITs Options Transaction Fee/Service Charge Fee-Based VAs

8 basis points 5 basis points 3 basis points

Annual Fee 0.200% 0.150% 0.125% 0.100% 0.075% 0.050% 0.025% 0.015%

$0 ? $9 None $4.50 $26.50 $50 $35 $25 None None

Advisor Payout

SAM I:90% of advisory fee, net of administrative fee (client pays transaction charges)

SAM II:90% of advisory fee, net of administrative fee and transaction charges (advisor pays transaction charges)

*Advisors with ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download