LPL Financial Strategic Enhancements Include Elimination of the Hybrid RIA Minimum Asset Requirement

Last Edited by: LPL Financial

Last Updated: October 22, 2018

Group of advisors discussing plan

Today, the company announced it was eliminating the minimum advisory asset requirement based on data suggesting it was not effectively contributing to growth.

“With a year’s worth of data to analyze, we’ve been able to confirm the effectiveness of the platform changes we made, with the exception of one,” said Andy Kalbaugh, managing director and divisional president, in an email to advisors. “The minimum advisory asset requirement for advisors to join a hybrid RIA did not contribute to growth as we originally hypothesized.”

Given the data, LPL will eliminate the $50 million advisory AUM requirement for new or existing advisors joining a hybrid RIA practice.

“We’re impressed with the fact that senior management is strong enough to reevaluate decisions and willing to change course after careful consideration,” said Don Patrick, president and co-CEO, Integrated Financial Group, an LPL-affiliated practice. “It is a positive for us that they see the value in large enterprise groups. Our preliminary analysis is the change should be beneficial to LPL and IFG.”

This change follows other pricing enhancements to the Strategic Asset Management (SAM) and Strategic Wealth Management (SWM) advisory platforms made earlier this year, and serves as another sign of LPL’s commitment to offering versatile, industry-leading programs for both affiliation models. At the same time, LPL will maintain recent improvements made to transition assistance for both hybrid and corporate OSJs.

Dan Arnold, President and CEO, was asked about the minimum advisory asset threshold at Focus 2018, LPL’s largest annual conference.

Watch his response below.

 “We’re committed to your business and to achieving mutual success through a strong partnership, and this change serves as another step in helping us grow together. Moving forward, we’ll continue to invest in both platforms and we remain committed to analyzing the business while listening to your perspectives.” Kalbaugh added.