LPL Schools Hybrid RIAs on Rollovers

This approach has been in place at the IBD for several years, says Mochal.

What the firm did recently, he points out, is to clarify that hybrid advisors may not suggest rollovers that involve brokerage accounts. Advisors can, however, mention rollovers if "they are limiting their recommendation to advisory services through their hybrid RIA firm, and if they follow certain conditions" in order to comply with the DOL rule.

In general, LPL's policy for the past few years has been to prohibit direct and explicit recommendations of rollovers. Nonetheless, advisors can educate clients about options for their retirement plan assets.

"If investors independently determine that they wish to roll out [assets from an employer-sponsored plan] and [put the assets] into an IRA, then advisors are permitted to assist [them]," Mochal added.

Again, for hybrid advisors, rollover services can be discussed in the context of advisory services offered by a hybrid RIA. Related steps must also be followed, according to the IBD.