LPL Financial has recently announced an expansion of its liquidity and succession program to nonaffiliated advisors, providing a compelling solution for advisors who wish to continue working with their clients without the burdensome responsibilities associated with running a business. The program invites principals at registered investment advisor (RIA) practices approaching retirement to sell their practice and join LPL’s employee channel.
This move comes after the success of LPL’s internal buyout program, which has been highly regarded as a means for retiring advisors to receive a cash payout for their book of business while maintaining their client relationships within LPL’s employee channel. “We’ve been effectively offering this to the advisors in the LPL ecosystem for a little over a year,” says Jared Fingeret, LPL’s Senior Vice President of liquidity and succession. “It has resonated really well with our advisor community.”
In fact, LPL has already completed 15 deals to purchase affiliated advisors’ practices, and another eight deals are expected to be finalized by the end of the year. Now, LPL is expanding its reach beyond its own operations to include advisors from various channels within the industry, including large brokerage firms, independent RIAs, and advisors affiliated with other independent broker-dealers.
LPL’s liquidity and succession program is an extension of its commitment to supporting mergers among affiliated advisory practices. These mergers often play a crucial role in creating a succession plan or an exit strategy for principals within a team.
With this expanded program, LPL Financial aims to provide a seamless transition for advisors nearing retirement, ensuring they can continue their work with clients while enjoying the benefits of the firm’s employee channel.
LPL Expands Services for Advisors with New Program
LPL Financial (LPL) is taking on a new role in the financial industry. While the company has traditionally connected buyers and sellers, it is now positioning itself as a direct buyer and offering relief to advisors looking to simplify their workload.
Jeremy Holly, LPL’s Executive Vice President of Strategic Business Development, explains that LPL was previously a facilitator but is now taking a more hands-on approach. The goal is to alleviate the responsibilities of business ownership, enabling advisors to focus more on their clients.
The program is open to any advisor considering a sale, although it is primarily designed for those who are three to seven years away from retirement. Advisors who sell their book of business to LPL will become employees but will have the ability to maintain their own brand and service model. Additionally, they will receive the institutional support of LPL, which is the largest independent broker-dealer in the nation.
LPL anticipates that the first transactions with outside advisors will be finalized early next year. The company sees this program as an exciting recruiting opportunity, as they look to attract outside advisors to their employee channel.
“We are viewing this as a significant opportunity,” states Holly. “It opens up a broad addressable market for us.”
With this new program, LPL is expanding its services and providing a new avenue for advisors to transition smoothly into the next phase of their careers.