LPL’s advisor community conversation series kicks off with LPL leaders and financial professionals sharing their personal stories about the challenges Black advisors face in their professional careers.
In the first episode of Around the Table, “Barriers to Success”, advisors kickstart a series-long conversation around being a financial advisor and the benefits and challenges that come with it, with how they got started in the industry and what might be a barrier to entry for other financial advisors.
Acceptance rates for Black candidates at many large firms with an employee model is low. “It took me 10 years to get into a program,” one advisor said. “I would interview, and then magically, three or four other people would get the job. It just kept happening over and over.”
Statistics from Certified Financial Professionals reveal that while Blacks and Latinos account for nearly 30% of the country’s population, they represent only 4% of the 86,378 certified financial advisors today.
“The person who’s hiring probably does not look like you. They’re speculating that you’re not going to make it, so you don’t get the support you need.”
Black candidates who are accepted into firms tend to find little support once they are hired. “The person who’s hiring probably does not look like you,” another advisor said. “They’re speculating that you’re not going to make it, so you don’t get the support you need.”
Many areas of the industry also rely largely on a financial professional bringing in high-net-worth clients. For Black financial advisors, this may mean stepping outside of their community for prospects. “And if you’re going outside your box … to where the wealth is, there are systemic biases against who [clients] should take [their] advice from,” a third advisor said.
Another advisor summed it up well, stating, “I think the biggest barriers for African-Americans are the compensation issues, the training issues, and the mentoring issues.”
“I think the biggest barriers for African-Americans are the compensation issues, the training issues, and the mentoring issues.”
Stay tuned for upcoming episodes highlighting the challenges Black advisors face and the work that LPL Financial is doing to advance change.
Watch all episodes of Around the Table: Black Advisors on the Newsroom.
To learn more about diversity and inclusion at LPL, visit our Diversity and Inclusion webpage.
The views and opinions expressed by the LPL Financial Advisor(s) may not be representative of the views of other Financial Advisors and are not indicative of future performance or success.
Any Advisor firms mentioned are a separate entity from LPL Financial.