Jumping Ship? What to Look for in LPL’s Independent Employee Channel
Louis Diamond Quoted
By Mrinalini Krishna
Last week LPL Financial announced it would introduce an independent employee model, taking attributes from both the independent broker-dealer model and the traditional employee model in a bid to attract another class of advisors who do not want to run their own business. LPL CEO Dan Arnold spoke of it as “the next generation” of the independent model; however, he did not share many details about the new offering.
“Are they still going to be able to own their client relationships like they would if they were independent? Or does LPL own the relationship similar to like the wirehouses do the client? That would be a big one,” says Louis Diamond, executive vice president and senior consultant at Diamond Consultants.
“What’s the upfront capital that LPL would be giving? LPL is very competitive with giving upfront signing bonuses or transition deals amongst independent broker-dealers, but I wonder if they increase it if someone’s becoming an employee, because they make more money on it,” says Diamond.