Lpl
Has anyone gone to LPL’s website and completed the Online Registration Kit? I have been talking to LPL and they advised me to do this to get the ball rolling as far checking my U4 and stuff. Seems harmless but I thought I would see if anyone completed this. Any downside to doing this?
It’s 100% harmless, IMHO. If you complete and submit the online registration kit, you’ll be contacted by LPL about proceeding. At that point, if you’re not sure that you want to proceed, you will get 0 pressure to do so and your current BD will be none the wiser regarding your “shopping”. Good luck!
Thanks. Also, there seems to be a lot in the kit, almost making it look like a contract of sorts. It has things in it like Outside Business Activity form, a reference letter that goes to my existing b/d upon resignation, background check, and then 20+ pages of what is called "Representative Agreement"which talks about LPL’s obligations as well as mine. The Rep Agreement also outlines payout on different products and how much I would pay my office manager. Perhaps I’m being overly cautious, but should I have any hesitation about signing this kit and sending it back to LPL? They have told me that nothing is done and no contact is made with my existing b/d until I actually resign. Thoughts?
[quote=aande24]They have told me that nothing is done and no contact is made with my existing b/d until I actually resign. [/quote]
That is 100% correct.
The one thing I always worried about was a credit inquiry showing up with LPL’s name on it. If your B/D happened to run your credit and noticed that, I would think it would be a red flag. Probably a remote chance of that happening, but it might be worth asking the question.
Great suggestion. Thanks.
Good point, indy.
I know for a fact that Jones routinely runs credit checks on FAs to see if they're looking elsewhere.LPL’s transition people has done this for thousands of advisors and potential advisors over the years. Don’t you think they know a little about how to get things done without tipping off the current firm?
Having just moved to LPL, I can tell you that there are two types of credit checks. The first is a soft check which only you will see on your credit report - no one else can see it. RJ and Cambridge run this type of check.
LPL will run a hard check - meaning that everyone can see it. So if you fear your employer is scanning your credit report, you may want to leave the credit check till the last minute. LPL can do everything else beforehand and there is no problem in filling out their online forms. It is not a contract until your licenses onboard with LPL. Before doing all of that, however, I would suggest you talk to an LPL recruiter. Just call LPL and ask who your regional recruiter is and they will put you in contact with them.[quote=Borker Boy]Good point, indy.
I know for a fact that Jones routinely runs credit checks on FAs to see if they're looking elsewhere.[/quote] I'm almost afraid to ask, but how do you know that it's a fact that Jones runs a credit check for that purpose? Did it show up on your credit report that Jones pinged it? I'm always amazed at the "facts" that I learn around here.It was on my credit report, when I went to buy my car, and it was rather recently(just before I left) not when I was hired.
When I first started working here, I called my field supervision director to ask him a question, and he volunteered that tidbit and a few other helpful nuggets of information about the firm’s covert ops on its employees.
He was getting ready to leave, so he had nothing to lose by giving me the heads-up. I certainly appreciated it.I would imagine that most B/D’s run periodic credit checks on their FA’s. That only seems to make sense. In my previous career, we ran credit checks annually on all of our employees that handled cash.
B24…why oh why would the laundromat run credit checks on its employees??
I'm not at all surprised that a firm does this when an employee is showing signs of not being 100% on board. Employers could save a lot of credit check charges if they would just keep their employees happy. My employer NEVER runs a credit check on me...It was on my credit report, when I went to buy my car, and it was rather recently(just before I left) not when I was hired.
Not ALL of them, just the one's they suspected of being illegal aliens. How did you know I ran the Scrub-O-Dub? And don't laugh, I was Assistant Floor Manager. I had big responsibilities.B24…why oh why would the laundromat run credit checks on its employees??
Just as I thought… I bet spiff was the night janitor in your little rub o dub.
No, he was my Intern.
Well, you did a lousy job!
That’s not what the company’s “President” said.
Actually I have been speaking with a recruiterand I am asking the questions that I am for further confirmation. The recruiter told me (today) that they do run a credit check, but it shows up on my credit report as an inquiry from Experian. In all the years thay have been doing this, they said theeyhave never had anyone ask why they have a new inquiry on their report. I think I’m comfortable withit now.
Who were you with prior to joning LPL? When didyou make the move? How successful have you been bringing over clients? Sorry for so many questions.It’s funny, I only hear this kind of horseshit from people like Spears and Borker…
"Oh yeah, they have former Covert Ops agents staking out your offices and your houses. They bug your phones and threaten to send secret pictures of you and that chick from the Virgin Islands doin’ it on the beach. Yeah, then they chase you around the city, and the cancel your credit cards, if you try to leave The Firm. Just wait. Yeah, you don’t know what you don’t know, you…NEWBIE, you."
Then you have these knuckleheads that never even WORKED at Jones spouting the same shit because they hear Spears talking about it.
It’s kind of like the most fertile ground for cults are Baptists, that’s because for the most part they don’t know what they believe. If Jones people were not isolated from other firms they might know different but they don’t, it’s part of the plan…You can try to call out Spears as being a wacko, he’s not…
Noggin, I actually agree with that, to an extent. It bugs me that we are so isolated. but where I am, we don’t have a lot of true veterans, and we are a long way from STL.
However, many of us are smart enough to knwo that there is life outside the firm. As I have said all along, you take the good stuff and leave the rest. The "cultish" stuff doesn't bother me because it doesn't really affect me. I don't see much of what is talked about on this board, but I also don't doubt that it happens in many regions. Personally, it doesn't matter to me. Until it really starts to affect my ability to do business, I'm fine. But you have to admit, the embelishments on this board are rather extraordinary sometimes. People like Spears take a lot of liberties, and most of us know that half of it is a joke. I don't blame Spears - he hates Jones and it's fun for him to get everyone going. But some people on this board think that everything spoken on this board is gospel. Talk about Eyes Wide Shut.B24, I would disagree with 1/2 being a joke. I call it like I see it and I trully believe if I was way over the top, there would be some ex jonesers to point that out. I guess you would be right, Spiff is not Dark Vader and Borker is not Luke Skywalker, I’m sorry…
I love your "I know we kill people, but not in my region. I don't see it, but I know it goes on elswhere, just not here, in front of me, I mean, I've never pulled the trigger on anyone...but I know they do it..but man I love my office and I will take the good with the bad."Spears, Spears, Spears. Here’s the thing. Not sure what you mean by “we kill people”. I guess that means we are so bad at investing that we just blow people up. That’s fine. Silly argument, but whatever. But you mean to tell me that there are NO LPL “advisors” out there that maybe, hmmmm, don’t know what they’re doing (just picking LPL as proxy for all indies)? The majority of the headlines you see about advisors F’ing up their clients comes from independant advisors. Now, I think that has NOTHING to do with being independant, or the firm they operate through (i.e. LPL or RJ or whoever). It’s just that no single channel has the market on irresponsible, reckless, or uneducated advisors. I DO believe that Jones exerts MORE control over their FA’s due to our regulatory structure. So IMHO, you will find fewer egregious f-ups from Jones advisors (it’s harder for us to get away with things) because of our structure, not because we are somehow more ethical. Yes, I know the firm likes to use the “more ethical” angle, which I don’t particularly like. Because even if the THINK they are that way, and truly BELIEVE it, it’s IMPOSSIBLE to control the behavior of 13,000 individual advisors. We just set ourselves up for embarassment this way.
But I don't for one minute believe that our firm "kills" people. Yes, I don't think American Funds and long bonds are the end-all of investing. But I also think, for many of the clients out their, that it does a pretty good job, and better than they could get elsewhere or on their own (we've all seen the horse manure that comes in from other firms sometimes). "I trully believe if I was way over the top, there would be some ex jonesers to point that out." Seriously? The only ex-Jonesers that come on here are the ones that hate Jones. Why would they defend them? If they were going to defend them, they would probably still be there.B24..I was making a point of you Knowing what your firm is about and you turning a blind eye to it. I don't think Jones salespeople walk around and shoot people. How old are you??
I don’t hate Jones, I still have good friends who work there. But I think they(Jones and FAs) make statements about Jones that are partial truths.
Yes once in a while it is fun to gang up on some Jones people(Cause there are like 6 of you in my 5 mile radius). Actually going to a Jones open house tonight(free food, hopefully)I also have some good friends that work for Jones, it is so cultish. I take in so many accounts from Jones, all American funds and long bonds. The steriotype of Jones FA's are ture, very unsuffisticated. Buy American Funds and hold 30 year bonds until you can't stand it anylonger. Who does commission business anymore anyways? Only Jones FA's.
[quote=B24]Noggin, I actually agree with that, to an extent. It bugs me that we are so isolated. but where I am, we don’t have a lot of true veterans, and we are a long way from STL.
However, many of us are smart enough to knwo that there is life outside the firm. As I have said all along, you take the good stuff and leave the rest. The "cultish" stuff doesn't bother me because it doesn't really affect me. I don't see much of what is talked about on this board, but I also don't doubt that it happens in many regions. Personally, it doesn't matter to me. Until it really starts to affect my ability to do business, I'm fine. But you have to admit, the embelishments on this board are rather extraordinary sometimes. People like Spears take a lot of liberties, and most of us know that half of it is a joke. I don't blame Spears - he hates Jones and it's fun for him to get everyone going. But some people on this board think that everything spoken on this board is gospel. Talk about Eyes Wide Shut. [/quote] It has already affected you, you're just not AWARE of it. If I keep you isolated there will be an effect now whether you realize it or not is another story. Since I left Jones, I have learned so much more about the business that it boggles my brain. If you have to devote so much time to outside resources to make up for the lack of info that you recieve from your BD don't you see that as an effect? It is a lot more than isolation. I don't hate Jones myself, I hate the half truths and the things I was lead to believe. I expected more and deservedly so. I wish you well.[quote=bspears]
B24..I was making a point of you Knowing what your firm is about and you turning a blind eye to it. I don't think Jones salespeople walk around and shoot people. How old are you??
[/quote] C'mon Spears! Of course I knew what you meant (well, I knew you DIDN'T mean actually shoot people). My point of the comment was that I don't exactly see how our investments kill people. True, many Jones FA's are no tthe most sophisticated, but based on what I see ACAT over from banks and other wires, we are killing a LOT fewer clients than many others. Although I am NOT an "American Funds and long-bonds" jockey, that is hardly a portfolio that is going to kill someone. I recently (well, like a year ago) inherited a few accounts from a (surprise) failed new-FA, and they were basically exactly that - pretty well diversified AMF equity portfolio with some laddered corporates. It's nothing exciting, about 50/50 stock/bond. It was down about 20% this year. Great? No. Terrible? Far from it. And the bonds are all rock-solid, nothing in financials (probably luck on his part). So, how is something like that "killing" the client? I COULD comapre that to the SB managed account that I moved over about 11 months ago (about 900K). 63 year-old, ready to retire, 100% in 7 SMA equity accounts. Tons of overlap (LC growth space), very little diversification, and tremendous risk. FA NEVER called the guy. I moved him into a portfolio of fixed annuities, money market, bonds, and equities. He is down about 18% this year, and won't have to TOUCH any of his damaged assets for at least 7 years. For kicks (because he was obviously still concerned about "losing" over 150K), I ran an analysis of what he would have done if he had stayed put (I had done the Morningstar on his SMA's). He would have lost 42% this year. Now, maybe the FA would have done something in the interim, but who knows. All I know is, five minutes with him and his wife, and I knew that they could barely handle the 40/60 split that I gave him (it's actually a bit more conservative when I factored in his 401K at work, which I will get soon). Yes, I am picking an obvious situation that benefits my argument. But the point is, some of you guys paint with such broad strokes, as if to suggest that all 11,000 FA's do the same thing. It just isn't the case.[quote=bjacobus]
I also have some good friends that work for Jones, it is so cultish. I take in so many accounts from Jones, all American funds and long bonds. The steriotype of Jones FA's are ture, very unsuffisticated. Buy American Funds and hold 30 year bonds until you can't stand it anylonger. Who does commission business anymore anyways? Only Jones FA's.
[/quote] I think we can be certain that you, too, are "unsuffisticated."[quote=Borker Boy][quote=bjacobus]
I also have some good friends that work for Jones, it is so cultish. I take in so many accounts from Jones, all American funds and long bonds. The steriotype of Jones FA's are ture, very unsuffisticated. Buy American Funds and hold 30 year bonds until you can't stand it anylonger. Who does commission business anymore anyways? Only Jones FA's.
[/quote] I think we can be certain that you, too, are "unsuffisticated." [/quote]Borker beat me to it. And it’s sterEOtype. I know those big words are difficult (that means hard) to spell, so I figured I’d help you out.
Who does commission business anymore? Umm...just about everybody. I'll bet that if you took a poll of the advisors just in this forum, you'd find that the majority of us do at least some mixture of fee based and commission based biz. In my opinion, if you aren't you're doing some of your clients a disservice. I'm curious, bj, what did you do with those Jones accounts you transferred with those horrible American Funds and long bonds?There are about a 1000 things you can do with an American Funds Portfolio and long bonds…
Why buy more than 1 American fund?? Aren’t all their holdings the same(some real nice overlap).
Space: Sorry for the poor spelling, I was about 5 beam and cokes deep. The only commission business I do is fixed income. So, I bet 25% of my business is commission. As for what I’ve done with the Jones accounts, mostly convert them to one of our managed ETF programs. Or at least shorten up there maturities to a 5-10 year ladder, rather than holding a 30 year bond portfolio. I know it’s tempting for you Jones guys to sell 30 year bonds for $30/bond…but c’mon.
So, you moved them from one index fund to another. Great idea. And you increased their expenses by what, only 50 bps a year?
What did those clients gain by you shortening their bonds to 5-10 years? Better income, better ratings, estate features? I'm just wondering what value you added to those folks that left Jones and American Funds.[quote=Spaceman Spiff]
So, you moved them from one index fund to another. Great idea. And you increased their expenses by what, only 50 bps a year?
What did those clients gain by you shortening their bonds to 5-10 years? Better income, better ratings, estate features? I'm just wondering what value you added to those folks that left Jones and American Funds. [/quote]The value that he has added is the fact that he has replaced the client's EDJ broker with a real broker.
Ahhhh, Spanky strikes again!
Space: The ETF's touch asset classes that American Funds, and most other funds don't touch; gold, silver, TIPS, MBS, 7-10 yr Treasuries, International fixed....fact if you can get much more specific with your allocation using ETF's. Add in the tactical component, and I think I have added value.
If I can swap a AAA 30yr for a AA 5-8 year and only give up a few bps in yield, and truely build a 5-10 year ladder, again I think I've added value. Drastically reducing their interest rate and inflation risk.Source URL:https://www.wealthmanagement.com/forums/rias-independents/lpl