That’s because most RIA custodial firms studiously avoid getting involved in the oversight of affiliated advisory firms. They will instead refer RIAs to outside compliance providers and third-party broker-dealers.

The conflicts are a “valid concern,” said Brian Hamburger, founder MarketCounsel LLC. He noted it makes sense for LPL to turn its compliance staff into revenue generators and to offer a service to advisors––just as long as LPL doesn’t force RIAs to use its compliance staff.

LPL officials said the program would be an option for advisors, and could be used in conjunction with third-party consultants.

“We  do believe it’s something unique and [RIA compliance] is certainly an area of expertise at LPL,” said Matt Enyedi, head of LPL’s RIA Solutions unit. “It’s a way we can lever our strengths.”

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