Retirement Account Disclosures

Please see important information below about our services to retirement accounts.

To request and obtain a paper version of these disclosures, free of charge, or if you have any questions with respect to your retirement accounts, please contact your financial professional.

 

1. Retirement Accounts Held at LPL Financial (Fiduciary Status)

For retirement accounts held at LPL Financial, please refer to the disclosure titled “Important Information about the Services We Provide to Your Retirement Account(s)” that was previously delivered to you.

 

2. Brokerage Retirement Accounts Held Away from LPL Financial (Fiduciary Status)

This disclosure is applicable if an LPL financial professional provides brokerage services to an individual or employer-sponsored retirement account (“retirement account”) held directly with an investment sponsor (e.g., a mutual fund or insurance company), and not held at LPL Financial. 

When LPL and your LPL financial professional provide investment advice to you regarding your retirement account held directly with an investment sponsor within the meaning of the Employee Retirement Income Security Act and/or the Internal Revenue Code (“retirement laws”), we’re fiduciaries under these retirement laws with respect to that investment advice. 

An investment advice fiduciary is someone who provides recommendations to a retirement account regarding the purchase, sale, or value of securities or other property for a fee on a regular basis based on a mutual understanding that such advice will be a primary basis for your investment decisions and that the advice will be individualized for that retirement account.

Many communications, services, and recommendations that your LPL financial professional provides aren’t considered investment advice under the retirement laws, including:

• Recommendations regarding taxable or other accounts that aren’t subject to the retirement laws;
• Educational materials, which aren’t intended to be viewed as individualized suggestions for you to take a particular course of action (i.e., investment performance data);
• General information about our services, products, fees, and financial professionals, and the reasons we think you should engage us to provide services to you (i.e., areas to consider when deciding whether to leave another financial firm for LPL);
• Information about alternatives you have when deciding whether to roll assets out of a workplace plan or transfer assets from a retirement account;
• Transactions you execute without a recommendation from us; and
• Episodic or sporadic recommendations and interactions with an LPL financial professional that aren’t provided as part of an ongoing or regular basis advice relationship, or made when the advice is understood not to serve as a primary basis for your investment decisions. 

If you’re engaging with us in a brokerage relationship for your retirement account held directly with an investment sponsor, it’s important to know that LPL and your financial professional do not agree to, and therefore, you should not expect that we will, provide investment advice or securities recommendations for your account on an ongoing basis, or provide ongoing account monitoring. These ongoing services are available if you’re engaging with LPL in an advisory relationship.

For more information about our services to retirement accounts and related conflicts of interest, including our Form CRS, visit the Disclosures page of lpl.com or contact your financial professional.

 

3.  Additional Disclosures for ERISA Plans and IRAs Using the Following LPL Financial Advisory Programs:

• Strategic Asset Management I (SAM I)
• Model Wealth Portfolios (MWP)
• Optimum Market Portfolios (OMP)
• Manager Select
• Manager Access Select

Prohibited Transaction Class Exemption 86-128 (the “exemption”) permits, where its conditions are met, ERISA plan and IRA fiduciaries to collect commissions and other transaction fees in connection with brokerage transactions.

• Text of the exemption
• Form ADV Disclosure Brochures for the Advisory Programs: Detailed information about transaction-related fees for advisory programs and descriptions of LPL Financial’s brokerage placement practices.
• Clients can terminate authorization permitting LPL Financial to rely on the exemption at any time (upon written notice to LPL Financial or the LPL financial professional). Such termination will terminate participation in the advisory program.  If a client chooses to terminate such authorization, LPL Financial has included a form of termination letter for this purpose.  
• Where required under the exemption, your annual performance report includes information regarding your account’s total annual transaction-related fees charged and portfolio turnover ratio. LPL has provided an explanation of the method used to calculate the portfolio turnover ratio and the annual transaction-related fee amounts here.
• Copies of this information are available upon request by contacting your LPL financial professional.