LPL Financial Automatic Cash Sweep Programs

Changes to Sweep Options Beginning Q2 2019

FDIC-Insured Bank Deposit Sweep Programs

As part of its automatic cash sweep program, LPL Financial offers two bank deposit sweep programs which take available cash balances (from securities transactions, dividend and interest payments, cash deposits, and other activities) in clients’ eligible accounts and automatically deposits them (which we refer to as sweeping) into interest-bearing Federal Deposit Insurance Corporation (FDIC) insured deposit accounts (Deposit Accounts) at one or more of the banks or other depository institutions that are available. The two programs, LPL Insured Cash Account (ICA) and LPL Deposit Cash Account (DCA), are available to different types of client accounts.

  • LPL ICA is available to individuals, trusts (where beneficiaries are natural persons), sole proprietorships and entities organized or operated to make a profit, such as corporations, partnerships, associations, business trusts, and other organizations.

ICA QUICK LINKS:

◦  Disclosure Booklet
◦  Current Bank List
◦  Current Bank List (Business Accounts)
◦  Current Bank List (Qualified Accounts)
◦  Current Interest Rate

  • LPL DCA is available only to advisory individual retirement accounts (IRAs).

DCA QUICK LINKS:

◦  Disclosure Booklet
◦  Current Bank List
◦  Current Interest Rate

Though the premise of these two programs is the same, due to different eligibility criteria for account types, there are also differences with regard to structure, fees, and other items, which are detailed in the ICA and DCA Quick Links listed above.

Money Market Mutual Fund Cash Sweep Program

For accounts not eligible for ICA or DCA, cash is swept to a money market mutual fund. For more information about the sweep programs, see the Automated Cash Sweep Program terms in the appropriate Account Agreement.  You may obtain information with respect to the current yields available on such sweep funds by contacting your financial professional.