September 19, 2016
DOL fiduciary rule’s unintended consequence: higher fees for investors
DOL fiduciary rule’s unintended consequence: higher fees for investors As broker-dealers move toward uniform commissions to comply with the Labor Department rule, investors could end up paying higher prices than …

Read more


DOL fiduciary rule’s unintended consequence: higher fees for investors

As broker-dealers move toward uniform commissions to comply with the Labor Department rule, investors could end up paying higher prices than in an unregulated environment

Sep 16, 2016 @ 11:37 am | By Bruce Kelly | Investment News

As broker-dealers adjust to the new Department of Labor fiduciary rule by instituting uniform commissions on a wide swath of investments, investors could be faced with higher prices on some investment products.

LPL Financial, the nation’s largest independent broker-dealer, is instituting new uniform pricing rules for alternative investments such an nontraded real estate investment trusts that could actually increase the initial price for some investments on its platform.

For example, Carey Watermark Investors 2 Inc., a nontraded REIT managed by W.P. Carey, has an upfront commission of 2% on its T shares, according to its prospectus. Under LPL’s new pricing policy for alts, the upfront commission to the broker on T shares, the only nontraded REIT share class that will be allowed on LPL’s platform in the future, will be 3%. To remain on the platform, Carey would have to increase the upfront commission, and thus the price, on the REIT an additional percentage point.

Article Located Here

Recent

4 Tips To Improve Your Banner Ads

4 Tips To Improve Your Banner Ads

The first step to improving your banner ads is to craft a compelling advertisement. Too often, alternative investment firms simply feature their logo and tagline, expecting viewers to click through.

Most Popular

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 10-3-2023 Blue Vault wishes to acknowledge and apologize for the delay in publishing some Q2 2023 NTR Individual Performance Pages (IPPs) as well as the full review. We recently added additional reporting metrics to our IPPs, and that, combined with coverage of all share classes and some additional…
Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update

Blue Vault Q2 2023 Performance Reports Update 9-25-2023 Blue Vault has published the Q2 2023 Nontraded BDC Industry Review as well as Individual Performance Report and Limited Operations pages for the following offerings (newly published pages in bold font): Nontraded REITS American Healthcare REIT Q2 2023 Apollo Realty Income Solutions Q2 2023 (limited operations) Ares…

Explore

Blue Vault Logo
Don’t miss alts news
and educational events

Subscribe Now