INDIRECT COMPENSATION. Indirect compensation is compensation paid by third parties rather than or in addition to being paid directly by the Plan. For example, a mutual fund underwriter, variable annuity issuer or distributor, or other product sponsor may pay LPL an ongoing amount that is based on the value of the Plan’s investment in the product. Indirect compensation may be charged by the product sponsor against the Plan’s investment or reflect the net value of the Plan’s investment in a product. You should refer to the product’s prospectus for more specific information. Compensation may be paid as follows: (a) Distribution and/or Servicing Fees, 12b-1 Fees and Trail Payments. LPL receives certain ongoing payments called distribution and/or service fees, 12b-1 fees or trails. They are paid for LPL’s distribution-related services and/or shareholder servicing, and are made pursuant to LPL’s agreement with the product sponsor. You should refer to the prospectus or other offering documents for the security or contract, for more detailed information about the amount of commissions and trail or 12b-1 compensation that LPL receives with respect to the Plan’s investment. This compensation is shared between LPL and your Representative.
Appears in 3 contracts
Sources: Brokerage Account Agreement, Brokerage Account Agreement, Brokerage Account Agreement