Independent Advisor Services, LPL Bill Dwyer President

Registered Rep.: Why would a wirehouse rep want to leave his firm and join yours? Bill Dwyer: To create an offering valued by their clients, a very high-quality work environment for their staff and themselves, and the opportunity to build wealth through equity in their businesses. RR: Other than your own, of course, which other independent broker/dealers are you impressed with and why? BD: Two features

Registered Rep.: Why would a wirehouse rep want to leave his firm and join yours?

Bill Dwyer: To create an offering valued by their clients, a very high-quality work environment for their staff and themselves, and the opportunity to build wealth through equity in their businesses.

RR: Other than your own, of course, which other independent broker/dealers are you impressed with and why?

BD: Two features are a must: self-clearing and scale. The former is a must for great service and platform evolvement, and the latter provides the resources to deliver.

RR: Least favorite compliance rule?

BD: The regulators are working aggressively to make disclosure reasonable and effective for the consumer, but there is still a long way to go.

RR: Are your affiliated advisors fee-based or mostly commission/transaction advisors?

BD: Approximately $63 billion of the over $232 billion in assets under management are advisory assets.

RR: How many of your reps are dually registered? Is that number growing or not?

BD: 100 percent of our advisors are securities licensed, and over 90 percent are licensed investment-advisory representatives through LPL.

RR: The most expensive aspect of running your independent broker/dealer firm in 2007?

BD: Investment in technology — an essential expense for great service, product offerings and managing growth profitably. Our scale is critical for success, and makes us an industry leader.

RR: Your recruiting goals through 2008 and beyond?

BD: Grow the firm with quality advisors at 10 to 15 percent a year.

RR: What are you thoughts on upfront bonuses?

BD: Declined to answer.

RR: The ideal advisor is? (Three words or less.)

BD: A caring, entrepreneurial leader.

RR: Biggest challenge in 2008 for the independent channel and your firm?

BD: Scale. LPL is fortunate to have the scale and critical mass to be able to create programs and services that allow our advisors to run efficient, profitable practices.

RR: The best technology investment your firm has made?

BD: Going self-clearing. LPL's self-clearing environment combined with our service center offer advisors the highest level of cost-effective service.

RR: Best advice you can give a wirehouse rep who is thinking about going independent?

BD: LPL advisors always say the same thing: They wish they had done it sooner. So don't wait: Become independent and start building your dream.

RR: What challenges will you face over the next five years?

BD: Helping high-quality advisors provide much needed advice to the massive wave of baby boomers entering retirement.

RR: If you could meet one business-related figure, dead or alive, who would it be and what would you ask?

BD: Declined to answer.

RR: In 10 years, your firm will be?

BD: A leading provider of support services to professional advisors — much like we are today.

RR: A book every financial advisor should read?

BD: Declined to answer.

LPL Financial Services

9785 Towne Centre Drive
San Diego, CA 92121
(800) 877-7210
www.lpl.com

Number of Back-Office Employees: 2,389

Number of advisors: 10,635

Total Client Assets Under Management*: $231.8 billion

Advisors' Average Length of Service (in industry): 17 years

Total Revenue Year to Date: $2.2 billion

Revenue from Commissions: $1.2 billion

Revenue from Fees: $609.8 million

Average AUM per Rep: $28.2 million

Average Payout per Rep (percent): 87%

Average Production per Rep: $288,900

Number of Dually Registered Reps: 90 percent, through LPL corporate RIA

*Does not include their affiliated b/d.

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