LPL Begins Recruiting to Employee Advisor Channel
August 5, 2020
Louis Diamond Quoted
By Diana Britton
LPL Financial announced its first foray into the W-2 affiliation model when it closed on its acquisition of Allen & Co., a Lakeland, Fla.-based broker/dealer and RIA with 30 advisors and $3 billion in assets under management, last year. Since then, the firm has been building out the business channel, and this week the firm officially opened it to the market with the opening of an office space in Boston, where it is currently recruiting.
“The fact that the grid very quickly grows above the typical 50% payout is unique,” said Louis Diamond, executive vice president and senior consultant at Diamond Consultants.
In addition, the payout is guaranteed for the life of the seven-year promissory note. Most other traditional firms can change the payout grid at any time.
“I’m a huge fan of the fact that it’ll lock in the compensation plan for the life of the deal,” Diamond said. “That’s awesome because that’s what most advisors are fearful of is, comp plan changes and moving to salary and bonus. So I think it remedies that.”