LPL Merges Two Investment Management Programs

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