BISA Magazine - Quarter 3, 2017 - 31

EXIT STRATEGY

LPL's Arthur Osman:
Views on the Regulatory Revolution
and Industry Evolution
By Gina Lauer
Arthur Osman, LPL's executive vice president of business consulting, Institution Services, spoke with BISA Magazine in
early 2017, during the company's annual Program Leadership Conference. Osman addressed some of the pressing
issues that financial institutions with investment programs are facing. Some of his remarks were updated in
June, following the start of partial implementation of the Department of Labor's (DOL) fiduciary rule.

LPL has really used the
DOL rule as an opportunity
to evaluate its business
model..." - Arthur Osman, LPL

X On the regulatory environment and how LPL is
addressing it: We think of it as a "regulatory evolution"
that is taking place in our industry, whether that is
the DOL rule or some other best interest standard that
we support.
We support the intent of the rule. We support the best
interest standard. LPL has really used the DOL rule as
an opportunity to evaluate its business model, and to
ultimately meet that best interest standard. So, a lot of the
work we have done and the plans that we have laid out
are designed to help us achieve that standard, and we are
going to continue on with a good portion of that work.
X On implementing changes for the DOL rule: We've
really looked at the pricing and investment minimums
within our advisory platforms, and we are positioned
well to do that since we own our own platform. We've
lowered minimums to make advisory available to the
smaller investor, assuming that's the right solution for

them. We've lowered the cost
of our platform to make sure
that it is more competitive.
We've done a great deal of work in and
around product standardization and have been
working closely with product manufacturers to create
standardization within product categories to remove
conflicts that could potentially exist between choosing
one product over another within a given category.
We've also created a number of transition tools, so if
advisory is appropriate for a client and we happen to
have them in a brokerage account today, we've created
an easy transition to convert a brokerage account into
an advisory account without having to close and reopen
an account.
In addition, LPL is developing a new advisory platform,
Guided Wealth Portfolios (GWP), a centrally managed
platform that couples digital investing with an advisor's

31
BISA Magazine



Table of Contents for the Digital Edition of BISA Magazine - Quarter 3, 2017

Table of Contents
BISA Magazine - Quarter 3, 2017 - Cover1
BISA Magazine - Quarter 3, 2017 - Cover2
BISA Magazine - Quarter 3, 2017 - Table of Contents
BISA Magazine - Quarter 3, 2017 - 2
BISA Magazine - Quarter 3, 2017 - 3
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BISA Magazine - Quarter 3, 2017 - 30
BISA Magazine - Quarter 3, 2017 - 31
BISA Magazine - Quarter 3, 2017 - 32
BISA Magazine - Quarter 3, 2017 - Cover3
BISA Magazine - Quarter 3, 2017 - Cover4
https://www.nxtbook.com/nxtbooks/bisa/2017q4
https://www.nxtbook.com/nxtbooks/bisa/2017q3
https://www.nxtbook.com/nxtbooks/bisa/2017q2
https://www.nxtbook.com/nxtbooks/bisa/2017q1
https://www.nxtbook.com/nxtbooks/bisa/2016q4
https://www.nxtbook.com/nxtbooks/bisa/2016q3
https://www.nxtbook.com/nxtbooks/bisa/2016q2
https://www.nxtbook.com/nxtbooks/bisa/2016q1
https://www.nxtbook.com/nxtbooks/bisa/2015q4
https://www.nxtbook.com/nxtbooks/bisa/2015q3
https://www.nxtbook.com/nxtbooks/bisa/2015q2
https://www.nxtbook.com/nxtbooks/bisa/2015q1
https://www.nxtbook.com/nxtbooks/bisa/2014q4
https://www.nxtbook.com/nxtbooks/bisa/2014q3
https://www.nxtbook.com/nxtbooks/bisa/2014q2
https://www.nxtbook.com/nxtbooks/bisa/2014q1
https://www.nxtbookmedia.com