LPL Financial LLC, the nation’s largest independent broker-dealer, has introduced a new employee advisor affiliation model where advisors can retain ownership of their book of business and will have the autonomy to run their business “as they see fit,” the company claims.
LPL noted that the payout ranges from 50 to 70 percent, and has no platform, transaction or administrative fees. Additionally, the firm will also manage office space, technology services, and employee benefits, according to a statement issued by LPL.
The firm claims that its independent employee advisors will have access to business consulting services, a marketing professional, administrative support, and “support and capital to grow or monetize their business.”
The brokerage giant launched the model with the acquisition of Allen & Company of Florida LLC in 2019, which provided input to help LPL design its own employee advisor model.
LPL has since opened an employee advisor office location in Boston, and the company plans to open offices nationwide based on the geographic locations of advisors who affiliate with the model.
“The expansion of our employee advisor model is the next step in our delivery of an independent solution to meet the needs of advisors wherever they are in the lifecycle of their business,” said Rich Steinmeier, LPL Financial managing director and divisional president of business development. “With our new model, independent employee advisors have more flexibility in how they run their wealth management practice and in how they choose to serve their clients, while having the support they have come to expect and the payout they deserve.”
LPL Financial provides service to approximately $762 billion in brokerage and advisory assets as of June 30, 2020. The company provides proprietary technology, clearing services, practice management programs and training, and independent research to 16,973 financial advisors.