LPL Financial Introduces Independent Employee Advisor Model

Last Edited by: LPL Financial

Last Updated: August 05, 2020

LPL Financial Introduces Independent Employee Advisor Model

CHARLOTTE, N.C. – Aug. 5, 2020 LPL Financial LLC, a leading retail investment advisory firm, independent broker-dealer and RIA custodian, today introduced a new employee advisor affiliation model unlike anything currently available in the marketplace. LPL’s new affiliation model offers advisors the benefits of being independent—including ownership of their book of business and the autonomy to run their business as they see fit. And as employees, advisors benefit from the security and stability of working with the market leader of the independent channel.

“The expansion of our employee advisor model is the next step in our delivery of an independent solution to meet the needs of advisors wherever they are in the lifecycle of their business,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “With our new model, independent employee advisors have more flexibility in how they run their wealth management practice and in how they choose to serve their clients, while having the support they have come to expect and the payout they deserve.”

Further differentiating the model is a highly-competitive payout, ranging from 50 to 70 percent, and no platform, transaction or administrative fees. LPL provides modern offices along with technology solutions that make it possible for advisors to work anywhere, anytime, seamlessly. LPL also provides advisors a full suite of employee benefits.

LPL launched the model with the acquisition of Allen & Company of Florida, LLC in 2019. The Florida-based firm provided input to help LPL design its differentiated independent employee advisor model. LPL has since opened an employee advisor office location in Boston, and the company plans to open offices nationwide based on the geographic locations of advisors who affiliate with the model.

LPL’s independent employee advisors also have access to specialized services and growth resources designed to empower their ability to be successful, including: business consulting services for strategic growth support, a dedicated marketing professional to help brand and market their business, experienced administrative support proficient with LPL systems and policies, and support and capital to grow or monetize their business.


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, professionals 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.

*Based on total revenues, Financial Planning magazine June 1996-2020

Securities and advisory services offered through LPL Financial LLC, a registered investment advisor. Member FINRA/SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” include registered representatives and/or investment adviser representatives affiliated with LPL Financial LLC, an SEC registered broker-dealer and investment adviser.

Forward-Looking Statements

Statements in this press release regarding LPL’s future operating results, growth and plans, including those related to its independent employee advisor affiliation model, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on LPL’s historical performance and its plans, estimates and expectations as of August 5, 2020. Forward-looking statements are not guarantees that the future results, plans, intentions or expectations expressed or implied 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, levels of activity or the timing of events to be materially different from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties or delays in recruiting or onboarding independent employee advisors and their clients; the choice by clients not to open or maintain brokerage and/or advisory accounts at LPL; changes in general economic and financial market conditions, including retail investor sentiment; the effects of competition in the financial services industry; and the other factors set forth in Part I, “Item 1A. Risk Factors” in LPL’s 2019 Annual Report on Form 10-K and any subsequent SEC filings. Except as required by law, LPL 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 those statements as representing LPL’s views as of any date subsequent to August 5, 2020.