Louis Diamond Quoted – By Lisa Shidler, RIABiz – Facing the prospect of reps with tens of billions of managed assets marching for the door, LPL Financial is slashing fees. Last week, the Fort Mill, S.C.-based independent broker-dealer announced it was reducing its administrative fee to a flat eight basis points for advisors using the corporate platform who manage $25 million to $50 million amid other inducements. In fact, the price cut may have been dictated by the OSJs that use LPL, says Louis Diamond, New York-based principal of Diamond Consultants, in an email.
Louis Diamond Quoted – By Lisa Shidler, RIABiz – LPL Financial has declared “war” on three broker-dealers that recruiters say drove a wedge between the giant broker-dealer and the advisors it sought to acquire from its new acquisition, National Planning Holdings Inc.
By Mindy Diamond – WealthManagement.com – When LPL announced their purchase of four National Planning Holdings (NPH) firms, it wasn’t just another day at the office for advisors in the independent broker/dealer space. “I feel like I’m riding a wave of disruptive uncertainty,” one IBD advisor said to me. “Are we next?”
Louis Diamond Quoted – By Tobias Salinger, Financial Planning – With LPL Financial trying to woo thousands of National Planning Holdings advisors while fending off the long-term threat posed by RIAs, the firm is offering advisors a better deal on its corporate RIA. “It’s another maneuver by them to get people off the outside custodians and onto the corporate platform,” Louis Diamond of Diamond Consultants says, calling the lowered fees a win for advisors already on the platform and a boon to LPL’s compliance efforts and bottom line.
Louis Diamond Quoted – By Danielle Verbrigge, FundFire – LPL Financial is ramping up efforts to convince firms in its hybrid registered investment advisor (RIA) channel to use its corporate advisory platform instead. That includes offering more transition assistance to convince existing hybrids to move to the corporate advisory platform and focusing recruiting support on advisors using the corporate platform. Starting next year, LPL is also barring small advisors or practices with less than $50 million in advisory assets from joining the hybrid channel.
Mindy Diamond Quoted – By Jeff Benjamin, Investment News – 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.
By Mindy Diamond and Barbara Herman – The world of the independent broker dealer is spinning fast and consolidation seems to be the watchword on everyone’s mind these days. Mega-firms like LPL gobbling up smaller BDs like those under the NPH umbrella is something we are likely to see much more of in the coming months.
Louis Diamond Quoted – By Lisa Shidler, RIABiz – LPL Financial is rapidly morphing from an organic recruiting machine to a power roll-up that can absorb outsized frictional attrition, name its price and terms and even trash-talk the industry to send a signal to its investors and future M&A targets alike.
Howard Diamond Quoted – By Tobias Salinger, Financial Planning – If LPL Financial retains about three-quarters of National Planning Holding’s business after its purchase of the 3,200-advisor network, CEO Dan Arnold will be happy.
Howard Diamond Quoted – By Janice Kirkel, RIABiz – LPL Financial’s new CEO made a smashing debut yesterday by laying out a refreshingly sober strategy. The Boston-based broker-dealer let Dan Arnold, 51, take the stage not to wow with a new direction but to pump new life into the old one. He essentially made the case that LPL can use its scale to win its fair share of market share in a fast-growing market.
