LPL hikes payout for some advisers

LPL Financial Retirement Partners has bumped up the payout to affiliated financial advisers who act as fiduciaries to retirement plans. These fee-based advisers will now be able to take home 95% payouts on business they do for plans, William R. Chetney, executive vice president at LPL Financial Retirement Partners, said in an interview last Monday at the ASPPA Summit in New Orleans. Previously, the payouts were set at 90%. “The retirement plan business has gone through fee compression over the last five to 10 years because it's maturing and there are more entrants,” Mr. Chetney said.

TOUGHER COMPETITION

More players in the retirement plan industry means tougher competition on pricing and some advisers will try to undercut others to attract more retirement plan business. Mr. Chetney said that LPL has an advantage in its size and that its scale allows it to give advisers a little more for the business they are earning. “You need scale to give the advisers what they need,” he said. “We want the advisers to be able to afford to have these conversations [with plan sponsors].” News of the payout increase was first reported by 401(k) Wire. [email protected]