LPL Financial announced today that it will launch a new subsidiary—LPL New Venture—which will provide services to novice advisors and those who are primarily focused on mass-market clients. Esther Stearns has given up her duties as president and chief operating officer to head up the new subsidiary, the firm said.
In effect, LPL has reorganized its senior leadership, naming Robert Moore president and COO starting May 1. Moore currently serves as the firm’s chief financial officer, and will continue to carry out those duties until a replacement is found.
Meanwhile, Bill Dwyer, president of national sales, will now oversee the firm’s sponsor relations function.
"The launch of LPL New Venture will better prepare the company to take advantage of significant opportunities arising from changing dynamics within the financial services marketplace,” Stearns said, in a press release.
Beyond that, the firm didn’t say much about the new venture, except to say that more details will be shared in the coming months. We don’t even know what ‘mass market’ means. Will the new venture serve as a training ground for new advisors? As a way to attract young people into the industry? Could it be a move to target “core millionaires” at a time when everyone is obsessed with high-net-worth? We don’t know, but more is to come…