LPL Merges Two Investment Management Programs

News March 20, 2024 at 12:23 PM

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LPL Financial has combined two advisor-focused investment programs, according to a recent filing with the Securities and Exchange Commission.

The firm updated brochures associated with one of its investment advisory programs, Strategic Asset Management, to reflect that it has consolidated the program's two elements — SAM I and SAM II.

"Strategic Asset Management was previously comprised of two programs, which provided for differences in the way that transaction fees were charged to an account," one brochure notes.

LPL's website describes SAM as one of its advisor-driven platforms — "a comprehensive, open-architecture, fee-based investment platform" created to help advisors deliver highly customized advice to clients.

Following the consolidation, SAM program clients will pay LPL transaction charges for the purchase and sale of certain securities in the account, unless the investment advisor representative separately agrees with the client to bear transaction fees, the brochures note.

If clients pay transaction charges, the investment advisor rep may recommend a greater volume of trading activity, the updated brochure notes. An advisor representative who agrees to bear transaction charges on a client's behalf may be subject to additional conflicts of interest and the transaction charges may be a factor considered in recommending trading activity, the filings note.

Because the SAM I and SAM II programs have been combined, SAM no longer is a "wrap fee program," an offering that, according to the SEC, generally involves an investment account where a client is charged a single, bundled or "wrap" fee for investment advice, brokerage services and other expenses.

Credit: LPL Financial

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