As expected, LPL Financial will be ending the ability of its reps to place mutual fund business directly with fund companies.

The change is expected to take effect next April, coinciding with the implementation of the U.S. Department of Labor’s new fiduciary rule.

LPL confirmed the timing and updated its advisors Friday with some preliminary details about a mutual-fund-only account intended as an alternative to direct business.

The new account, to be rolled out in April, will not levy custodial fees, transaction charges or other “nuisance fees” that drive advisors to custody assets directly with product sponsors, said Robert Pettman, LPL’s executive vice president of investment and planning solutions.

The fund-only account will offer products with upfront loads that are levelized in the range of 3.0 percent to 3.5 percent, with a 25 basis point trail.

LPL is hoping to have up to 15 fund families develop new share classes to fit the model, Pettman said.

“We’re also looking to shape this platform so you can exchange between fund families” with no fees, he said.

Pettman said existing accounts and systematic investment plans done directly with fund companies will be grandfathered, but the firm would no longer allow direct business for new assets after next April.