Mindy Diamond Quoted
By Jeff Benjamin
LPL Financial, the nation’s largest independent broker dealer, is instituting new policies to make sure more new advisers joining the firm will use its corporate registered investment adviser.
“LPL is trying to say ‘We want to disincentive RIAs from using outside RIAs,'” said Mindy Diamond, president of the recruiting firm Diamond Consultants Inc.
“They want advisers to use the corporate RIA, because the economics are more attractive to LPL,” she added. “The real message is, people join firms like LPL because they’re looking to get away from bureaucracy, and a memo like this makes these guys feel much less independent and more like an employee of a larger firm.”