When it comes to working with a financial advisor, it`s important to have a clear understanding of your rights and responsibilities in the relationship. That`s where the LPL client agreement comes in.
LPL Financial is a leading provider of investment and wealth management services, working with independent financial advisors across the United States. The LPL client agreement outlines the terms and conditions of the relationship between you and your advisor, as well as LPL as the broker-dealer.
Before signing the agreement, it`s important to review all of its components, including the following:
1. Investment Objectives
Your advisor will work with you to identify your investment objectives, whether they be short-term or long-term goals. This section of the agreement outlines the types of investments that may be suitable for your specific objectives and risk tolerance.
2. Fees and Commissions
Your advisor is compensated for their services through either a fee-based or commission-based structure. The LPL client agreement will outline the fees and commissions associated with your account, as well as any other charges that may apply.
3. Termination
The agreement will also specify the circumstances under which either you or your advisor may terminate the relationship. This could include changes in your investment objectives or a breach of contract by either party.
4. Confidentiality
Your financial information is personal and private, and it`s important to protect it. The LPL client agreement includes provisions for confidentiality and privacy of your information.
5. Limitations of Liability
While your advisor will act in your best interests, neither they nor LPL can guarantee the success of your investments. This section of the agreement outlines the limitations of liability for your advisor and LPL.
Overall, the LPL client agreement is a vital component of a successful relationship with your financial advisor. By reviewing and understanding the terms and conditions outlined in the agreement, you can feel confident in your investment decisions and trust in the expertise of your advisor.