LPL in the News: Affiliation Flexibility & Recruiting Post-Covid

LPL’s Flexible Options for Advisors

A few broker-dealers are making sure that advisors interested in moving to their firms have a variety of different affiliation options to choose from, and LPL Financial is no exception. A recent Financial Advisor IQ article highlighted all six affiliation model options that LPL currently offers:

• An advisor employee (W-2) model, Linsco by LPL Financial
• A supported independence model, LPL Strategic Wealth Services
• A traditional independence model
• Two RIA affiliation models: pure and hybrid
• An option to join an existing bank or credit union affiliated with LPL

In the article, Gary Carrai, LPL Financial’s executive vice president of business lines strategy, spoke specifically about the benefits of LPL’s RIA solutions vs. other custodians. He said, “We have matching capabilities and can deliver value differently than what they can — their solution is largely a custody-like solution, where we can offer other wealth management capabilities, and we expect to see some acceleration as a result of that.”

LPL’s Advisor-Centric Culture and Innovative Service Offerings

Gone are the days when advisors looking to change firms are just seeking financial incentives, according to a recent Financial Advisor Magazine article. Advisors are also weighing cultural fit and services. 

LPL is one firm that is aware of this shift, said Scott Posner, LPL’s executive vice president of business development. Posner points out that LPL has improved its wealth management and service capabilities, is reimagining its offerings, and continues to create new affiliation models. LPL wants to “suit all types of firms from high-growth to those that are more mature,” Posner added.

That strategy is attracting advisors of all sizes, but particularly larger firms. Following are some of the latest moves to LPL that hit the headlines:

• Florham Park, New Jersey-based Bodnar Financial Advisors, founded by John Bodnar, has joined LPL Financial’s broker-dealer, RIA, and custodial platforms, as reported by The DI Wire.
• Ridgewood, New Jersey-based Resonate Wealth Partners was launched by Alexander Guiliano, a 10-year veteran who affiliated with LPL’s supported independence model, Strategic Wealth Services, as reported by Barron’s.
• Decatur, Alabama-based The Albany Group was launched by Beau Jones, Chris Story, Taylor Roberts, and Joseph Montgomery, as reported by The DI Wire. The team chose to affiliate with LPL’s Strategic Wealth Services.
• Boca Raton, Florida-based advisor Chip Marcus joined LPL Financial’s employee advisor channel, Linsco by LPL Financial, as reported by Financial Advisor Magazine. He launched his firm Chip Marcus Wealth Management Powered by LPL Financial with a goal to grow his business.
• Clarks Green, Pennsylvania-based Astra Wealth Advisors, led by Chris Albright, joined LPL Financial’s broker-dealer, RIA, and custodial platforms, as reported by The DI Wire.

When asked why he made the move to LPL Financial, Astra Wealth Advisors’ Chris Albright answered, “LPL’s tech spend is a true differentiator. It’s evident that LPL is a fintech firm that supports its advisors with personalized, innovative solutions that empower us to deliver elevated services to our clients. As market compression continues in the industry, it’s crucial to partner with the firm with the best technology. It gives us a competitive edge.”

Evolution of LPL Financial Research

Jason Hoody, senior vice president of research at LPL Financial, is committed to adding to their recommended list of strategies and continuing to bring valuable information and insights to the advisors LPL serves.

In an interview with Citywire, Hoody spoke about his team’s strategy to revamp their large growth and emerging markets offerings, while continuing to add new small-cap managers. Among recent additions were Delaware Ivy Large Cap Growth, Fuller & Thaler Behavioral Small Cap Growth, and Baird Core Plus Bond.

“We had a lot of moderate risk strategies, and I think now what we’re coming into is a lot of those were done similarly,” said Hoody. “So now we’re trying to see if there’s more differentiation amongst the managers so that we can have managers better distinguished than we had in the past.”

Looking for more updates, insights, and perspectives? Read more News and Insights.