LPL hikes transfer and termination fees

Brokers or clients can leave LPL Financial — but the change will cost them. On Friday, Boston-based LPL Financial will increase its outgoing account transfer fees for retail accounts and termination fees for accounts such as individual retirement accounts by $20. That will raise the fees to $95, from $75. Industry observers said the move puts LPL Financial in line with other large regional firms or wirehouses but separates it from smaller, traditional independent-contractor broker-dealers. Those firms typically charge between $50 and $75 for an account transfer, and quite often clearing firms contribute as much as half to defray the expense, sources said. Because of the added cost, an increase in fees to transfer client accounts at any firm is one way for a broker-dealer to slow down or inhibit a representative from leaving a firm, executives and recruiters said. LPL Financial informed its advisers of the change in June, said Kevin Dinino, a spokesman. The increase aligns LPL’s fees with industry standards, he said. The firm is the largest independent-contractor broker-dealer in the industry, with close to 11,000 reps and advisers on its various platforms.