SAN DIEGO – Aug. 19, 2019 – LPL Financial LLC, a leading retail registered investment advisory (RIA) firm and independent broker-dealer, announced today at its Focus 2019 conference the firm’s intent to deliver a differentiated wealth management platform designed to offer more choice, give advisors more time in their day and provide a service experience that demonstrates care for its advisors.
“We are going to meet you where you are in the evolution of your practice, transform how you spend your time and give you a leading client care experience,” LPL President and CEO Dan Arnold told the record-number of advisors attending LPL’s flagship advisor conference. “By doing this we will create the next generation of wealth management as one team on one mission.”
Arnold opened his remarks at Focus by acknowledging that time – or the lack thereof – is one of the biggest challenges facing advisors. At the same time, according to Cerulli, advisors spend more than 40 percent of their time on administrative and office tasks.
To help give advisors more time back in their day, Arnold shared ongoing investments the firm is making in its ClientWorks platform, including enhancements to automate, digitize and streamline workflows. These enhancements can potentially save advisors at least an hour or more a day, Arnold said. For example, one of the new features planned for this fall is expected to make it possible for advisors to open new accounts with 30 percent fewer fields and in half the time it takes today.
Another technology enhancement designed to improve the advisors’ practice is LPL’s new texting solution, which the company plans to launch this quarter. The firm will use a secure third-party vendor, MyRepChat, to surveil and archive text messages between advisors and their clients.
In addition, LPL announced that its suite of virtual services is now available to all advisors. The new Business Solutions offering includes CFO Solutions, Marketing Solutions and Admin Solutions. All three services give advisors the choice to outsource operational and specialized functions to LPL experts, with the goal of freeing up more time in their day for higher-priority work.
“Our goal is to give you more modern capabilities, at lower pricing, that will differentiate your business and delight your clients,” Arnold said.
The company also gave an update on its new advisory-centric and employee affiliation models, which will give advisors more choice and flexibility in how they operate their business on LPL’s platform. The advisory-centric model is designed for advisors who choose to provide solely fee-based services, an increasing trend for advisors who want to eliminate the day-to-day activities required with a brokerage business. The model will support streamlined technology and operational workflows, while offering advisors a choice in how they want to manage risk - whether by outsourcing risk management to LPL’s corporate RIA or by operating their own RIA.
LPL’s new employee model will preserve the principles of independence by allowing advisors to retain ownership of their book of business, while also preserving their ability to manage client portfolios as they choose. LPL will provide oversight, infrastructure and operations support, including services such as payroll, employee benefits, real estate and financial management.
Underscoring the entire advisor experience, LPL is developing a new client care service model that allows advisors to interact with LPL service teams using the channel of their choice. It also connects advisors with highly-trained subject matter experts who are able to provide fast, accurate and consistent answers.
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About LPL Financial
LPL Financial is a leader in the retail financial advice market and the nation’s largest independent broker-dealer*. We serve independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.
Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA / SIPC.
*Based on total revenues, Financial Planning magazine June 1996-2019
Statements in this press release regarding the Company's future results and customer service, including its success in delivering the next generation of wealth management and new employee affiliation models for LPL advisors in the future, as well as any other statements that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the Company's historical performance and its plans and expectations as of August 19, 2019. Forward-looking statements are not guarantees that the future results, plans or expectations expressed or implied by the Company will be achieved. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive, and other factors, which may cause actual financial or operating results, or the timing of events, to be materially different than those expressed or implied. Important factors that could cause or contribute to such differences include: execution of the Company’s plans and its success in realizing the benefits expected to result from its initiatives and programs, including its customer service and technology initiatives; and the other factors set forth in Part I, “Item 1A. Risk Factors” in the Company's 2018 Annual Report on Form 10-K and any subsequent SEC filing. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if its estimates change, and you should not rely on statements contained herein as representing the Company's views as of any subsequent date.