Working with a Financial Professional Associated with M&T Bank

When a financial professional is affiliated with a bank or credit union, such as M&T Bank, there are certain nuances to the relationship that you, as an investor, should be aware of. If you're currently working with an LPL financial professional who affiliates with M&T Bank (or you're considering doing so), we've provided some information on this relationship and what it means for you. 

How are LPL and the financial institution different?

M&T Bank is a depository institution that offers products such as checking and savings accounts, money market accounts, and certificates of deposits. Banks and credit unions are typically not registered as broker-dealers or investment advisors. 

LPL Financial LLC (LPL) is a registered broker-dealer and registered investment advisor in the business of buying and selling securities like stocks, bonds, mutual funds, certain other investment products, and insurance products, as well as offering investment management (or "advisory") services (the LPL Investment Program). LPL and its financial professionals offer the LPL Investment Program on and off the premises of M&T Bank. LPL is a separate entity from, and is not an affiliate of, M&T Bank.

If you decide to work with a financial professional as part of the LPL Investment Program, the investment products and services are being offered by LPL and not M&T Bank. the LPL Investment Program operates through M&T Bank under the “doing business as,” or brand name of, Wilmington Advisors @ M&T. While the name “Wilmington Advisors @ M&T” may bear some resemblance to the name “M&T Bank”, and to the name(s) of one or more entities affiliated with M&T Bank, it is important to understand that the products and services are still being offered by LPL — not M&T Bank. The products and services offered by LPL are not obligations of, and are not guaranteed by, M&T Bank, its affiliates, or any federal or state government agency.

What is the relationship between LPL and M&T?

M&T Bank and LPL are not affiliates, but instead have entered into an agreement that:

  • Allows LPL and its financial professionals to provide investment products (and, if applicable, advisory services) on or off the premises of M&T Bank.
  • Establishes a referral program through which M&T Bank may refer a customer to the LPL financial professional’s office (again, on or off the premises of M&T Bank)
  • Allows LPL to compensate M&T Bank for the use of its facilities, technology, marketing services, office supplies, and also for client referrals. 

LPL financial professionals are employed by M&T Bank. However, when LPL financial professionals are offering products and services through the LPL Investment Program, they are registered with LPL for the purpose of offering those investment and insurance products and services. Your LPL financial professional is compensated directly or indirectly by LPL for the products and services offered through the LPL Investment Program. 

More on the referral program:

The agreement between LPL and M&T Bank allows LPL to pay M&T Bank (in cash or non-cash) for referring customers to the LPL Investment Program. That creates a conflict of interest and an incentive for M&T Bank to recommend the LPL Investment Program. This client referral compensation varies, but because your financial professional is employed by M&T Bank, M&T Bank typically receives more than 75% of brokerage commissions and advisory fees earned on such products and services. This referral arrangement does not result in any increase in the fees or commissions you pay to LPL. M&T Bank is paid directly by LPL for the referral. 

In addition to this direct payment arrangement, LPL may provide other forms of compensation to M&T Bank, such as bonuses, awards, or other things of value (gift cards, etc.). These payments may be more than M&T Bank would get paid if you had a separate relationship with LPL.

How do investment products and services through the LPL Investment Program differ from depository products?

  • Purchasing investment products and services involves investment risk, including the possible loss of principal and market value. 
  • The value of the investment products may fluctuate, and the performance of the investment is not guaranteed. 
  • The investment products offered by LPL are not obligations of M&T Bank, and are not endorsed, recommended, or guaranteed by M&T Bank.
  • These investment products offered by LPL are not insured by the FDIC, NCUA, or any federal or state government agency, except for certain certificates of deposit and cash sweep accounts. 
  • LPL is a member of the Securities Investor Protection Corporation (SPIC). The LPL SIPC Membership provides account protection up to a maximum of $500,000 per customer, of which $250,000 may be claims for cash. An explanatory brochure is available at The account protection applies when an SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments.

If you have any additional questions or concerns about working with a financial professional who is associated with M&T Bank, please contact LPL at (855) 860-4878.

This material has been prepared by LPL Financial LLC.