BMO Family Office
Please be reminded that as of March 27, 2021, BMO Harris Financial Advisors became, BMO Investment Services. As BMO Investment Services, we are partnered with LPL Financial where we have transferred all accounts and assets onto their platform, effective Monday, March 29, 2021.
As a result of our partnership, BMO Investment Services is pleased to provide clients and advisors with enhanced features and improved functionality. Please review the following Frequently Asked Questions and contact your Advisor if you would like additional information.
Please note that we will refer to our new name of BMO Investment Services throughout the remainder of this document.
LPL is the nation’s largest independent broker-dealer and offers an impressive range of products, services and resources to help your advisor provide you with superior service. By investing heavily in innovative technology and automation, LPL makes it easier for your advisor to help you achieve your financial goals.
No. Our relationship, the services we provide, and your relationship with BMO Investment Services all remain the same. Only the broker-dealer is changing, and that will not in any way affect your relationship with BMO or with your advisor.
BMO Investment Services will offer innovative resources for your advisor to provide you with superior service, including: a) research, so you receive leading-edge, objective financial guidance; and b)
advanced technology platforms and back-office support, allowing your advisor to provide you with even greater personalized service.
LPL has the same regulatory and protection requirements as BMO Investment Services. LPL is a Financial Industry Regulatory Authority (FINRA) member firm, subject to federal securities laws and the rules of industry self-regulatory organizations. LPL is also a member of the Securities Investor Protection Corporation (SIPC).
March 27, 2021.
You may continue to direct all your questions to the BMO Investment Services contact center, as usual. Call 800-472-0060 or call your advisor who can also answer your questions.
You do NOT need to take any action, if you wish for your account to remain with your advisor. Negative Consent Letters were sent to all clients as required by regulatory agencies.
There should be no tax implications with the movement of accounts. Your accounts will be transferred to comparable products on the new platform at LPL. However, we recommend you consult your tax professional for further information.
Your fundamental investment strategy and allocations will remain the same for the most part. In some cases, there may be some advanced investment options that you can discuss with your advisor after your accounts move.
Depending on the account type, you may be required to sign a new agreement with LPL. Once the accounts convert, you will be notified if you need to sign a new agreement. The process is relatively easy and can be done via electronic signature or by paper if desired.
If your request is received after conversion on March 27, 2021, you can make a request to move your accounts to another broker-dealer. There is a charge ($125) associated with changes made after the transition deadline.
You may wish to consider receiving your statements electronically, or you may prefer to continue receiving paper statements in the mail. You will be able to make this choice upon the conversation date.
Per usual, you will be able to access your accounts through our two websites, www.bmoharris.com or www.bmowealthmanagement.com. Account balances and positions will not be visible online until March 30, 2021.
There is no cost to you.
This will not in any way affect your relationship with your advisor. You can continue to rely upon your advisor to provide the same high caliber service you expect. Your accounts will be moved to the LPL platform on Monday, March 29, 2021. Your fundamental investment strategy and allocations will remain the same for the most part. In some cases, there may be some advanced investment options that you can discuss with your advisor after your accounts move. When the transition is complete, your advisor may reach out to ask you to sign a new agreement. The process is relatively easy and can be done via electronic signature or by paper if desired.
Your advisor can discuss questions you have regarding fees.
Insured Cash Account (ICA) & Deposit Cash Account (DCA)
ICA: The LPL Insured Cash Account (ICA) is an FDIC-insured, interest bearing, automated cash sweep program. Every business day, uninvested cash is automatically transferred to the LPL ICA, so your cash earns interest without incurring transaction charges. When the cash is needed to cover a debit, it’s automatically transferred back to the account to fund the transaction. Cash swept through LPL ICA is insured by the FDIC.
DCA: Under the DCA program, available cash balances (from securities transactions, dividend and interest payments, cash deposits, and other activities) in your eligible accounts will automatically be deposited (which we refer to as sweeping) into interest-bearing Federal Deposit Insurance Corporation (FDIC) insured deposit accounts.
PTC stands for Private Trust Company, N.A., which is a subsidiary of LPL. At the time of conversion, all Traditional IRA, Simple IRA, SEP-IRA, Roth IRA or Coverdell Education Saving Accounts will transfer from Pershing to PTC as custodian.
Yes, this account information will remain on your statements.
As a client of BMO Harris Financial Advisors in 2020, you will receive one 1099 (from Pershing) for the 2020 tax year. For the 2021 tax year, you will receive two 1099s — one from Pershing and one from BMO Investment Services (via LPL). Essentially there are no concerns for your 2020 tax season, apart from any contributions you may make in 2021 that apply to tax year 2020. (And you will receive that information from the broker-dealer to where the contribution was made.)
Your March statement will be your first statement from BMO Investment Services. This statement usually arrives to you in early- to mid-April. You can talk to your advisor to receive your statement electronically for faster delivery if you desire.