LPL Financial markets itself as a savior to reps at 14 IBD firms under the ‘precarious’ spell of private equity investors, despite its own private equity past
Louis Diamond Quoted
By Lisa Shidler
LPL Financial has circulated two documents that paint private equity investors as hobgoblins to be avoided by IBDs, while inviting brokers to join LPL, which, ironically, has the same hobgoblins in its past and now answers to demanding stockholders.
LPL’s message is also less than resounding given its recent struggles in keeping advisors, says Louis Diamond, principal of Diamond Consultants in New York City.
“It seems like LPL is on the offensive but it’s actually a defensive move because they’ve been getting hit by these broker-dealers that they’re attacking,” Diamond says. “I haven’t seen many big groups going there, and there has been some decent attrition. There have been massive departures and more coming.”