Record Numbers: LPL Financial’s Month in Headlines

LPL’s Newest Milestones

A growing headcount shows financial advisors are craving the dynamic support LPL offers independent practices, as LPL extends his reach to more financial institutions.

The final few months of the year are a time of reflection and gratitude, and at LPL Financial that couldn’t be more warranted. Third quarter results for the firm revealed a great deal of growth. Barron’s recently highlighted LPL’s increase in advisors and asset management and summarized key numbers from the year, including “$27 billion in organic net new assets, translating to 10% annualized growth” for the firm. Key events that positioned the firm for its record-setting success, including LPL’s acquisition of Waddell & Reed.

With an additional “513 new advisors” in the third quarter, LPL is now “within spitting distance of 20,000 advisors,”—though it’s doubtful LPL will use that measuring method in action. Included among Barron’s article highlights are the firm’s numbers that surpassed LPL’s own third quarter estimations. LPL anticipated a “98% estimate” for asset retention following Waddell & Reed’s welcome. LPL Financial CEO, Dan Arnold, shared that “99% of assets had now been retained.” And as Barron’s shares, high retention rates in these circumstances are “a mark of success.”

LPL’s growth continues to reach across the broad spectrum of the financial industry. In another article from InvestmentNews, LPL’s support is finding favor with banks and credit unions. The article shares more details on LPL’s “three major agreements” with BMO Harris Financial Advisors and M&T Corp., and CUNA Brokerage Services Inc., over the past 18 months. As more financial businesses opt for independent broker-dealers like LPL, traditional wirehouses and institutions may continue experiencing breakaways.

LPL’s Business & Affiliation Models

LPL’s suite of business solutions (such as LPL’s Business Solutions) keep sweetening LPL’s offerings.

Part of LPL’s quarterly success may be due to its catalogue of solutions and services for advisors looking to breakaway, seamlessly, from the traditional wirehouse model. LPL’s new affiliate models such as Linsco by LPL Financial and LPL’s Strategic Wealth Services (which provides a “white glove” experience for breakaway advisor) continue to gain appeal, along with LPL’s Business Solutions (LBS). Wealth Management recently shared more on how offerings such as LBS has led to LPL’s recent success.

In Wealth Management’s words, LPL Financial “reported $13 billion in recruited assets during the third quarter, up 24% from a year ago, bringing its trailing-12-month recruited assets to $83 billion, more than double a year ago.” The appeal of LPL’s Business Solutions (LBS) may stem from its a-la-carte approach to support and services. LBS options include day-to-day assistance and growth support through Admin Solutions, Marketing Solutions, and/or Business Strategy Services.

Additionally, advisors can protect and secure their business through M&A Solutions, and Digital Office Technology Solutions. Advisors can also find support in planning how their practice will operate, or be owned, in their absence or exit with the The Assurance Plan and The Resilience Plan. Managing Director, Chief Financial Officer at LPL, Matt Audette, noted that LBS’s offerings currently “generate roughly $25 million of annual revenue” and “contribute to organic growth by helping drive recruiting, same-store sales and retention.”

LPL’s Newest Associations

Two new firms have decided to join LPL Financial through services to get more time face-time with clients and pursue independence.

Through its broker-dealer, corporate registered investment advisor (RIA) and custodial platforms LPL has gained two new affiliates looking to pursue further independence. Scott E. Howell joins LPL CFP^®, through his alignment with Gladstone Wealth Partners that operates on LPL’s hybrid RIA platform. River Cities Financial Services joins LPL with impressive assets through the firm’s five advisors.

Both firms mentioned LPL’s support and services for independent practices as a main factor in their decision to leave their former firms. Michael Anthony, owner and manager of River Cities Financial Services, shared how LPL’s technological capabilities and financial capabilities will support the firm’s client-centered goals in his statement:

“This move gives us the flexibility to continue to build the practice on our own terms, putting our clients’ interests at the center of everything we do. With LPL, we have the stability of a publicly traded company along with innovative, integrated technology that’s in a simple format, allowing us to spend more time with clients.”

Howell shared similar sentiments regarding his firm’s move to LPL, noting he has spent “years researching and analyzing the advisory industry” and the independent model is the “best case scenario” for his clients. “LPL is a publicly traded Fortune 500 company that provides all of the tools and resources that I need to deliver for my clients and be the best advisor possible,” he said, adding, “LPL has the scale, products, technology and compliance oversight that my clients require.”

LPL’s Leadership, Diversity, & More

Great things come in threes for LPL’s advisory board as Same Cone, Jessica McNamee, and Grace Yung join LPL’s Advisor Inclusion Council.

LPL Financial’s commitment to Diversity & Inclusion influences initiatives across the corporation. From employees, to affiliates, and to processes of connecting diverse advisors to each other, and to the investors who need their unique perspectives. With the addition of Same Cone, Jessica McNamee, and Grace Yung to LPL's Inclusion Council, that commitment grows and initiatives become even more effective throughout LPL.

Each advisor brings new, diverse experience and special skills to the industry, and to LPL. According to LPL’s press release which announced their joining, all three advisors are active in their communities, and have proven to be dedicated advocates and mentors in a variety of roles. LPL Financial’s senior vice president, Business Development, Kraleigh Woodford shared more on the significance of the council growth during an unprecedented time for the industry and communities.

“While the pandemic continues to keep so many people apart, LPL’s Advisor Diversity and Inclusion team has accelerated virtual and other engagement opportunities this year to help underrepresented advisors connect with peers who have similar backgrounds or clients,” she said, adding the firm recognized “the value of engaging with peers to connect, learn from one another and explore LPL resources designed to help advisors grow and enhance their businesses.”

Fortune 500 as of June 2021. Fortune 500 ranks U.S. companies based on a review of the prior year's total revenue and factors such as profits after taxes, year-end assets and total stockholders' equity.

The views and opinions expressed by the LPL Financial Advisor(s) are as of the date of the recording. These views may not be representative of the views of other Financial Advisors and are not indicative of future performance or success. Neither LPL Financial nor the LPL Financial Advisor can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

Gladstone Wealth Partners, River Cities Financial Services, and LPL Financial are separate entities.