Here's the situation: I've been in a bank program with LPL for 3 years, and will gross $100k this year. LPL is the 4th B/D I've been with (3 years as an unlicensed SA at a different bank and 3 years at the current bank, each bank doing a B/D switch while I was there) and LPL is far and away the best one so the question isn't whether to stay with LPL.
The bank is changing our commission grid, and the payout is dropping significantly- even after our program has tripled gross in the last 3 years. I've had it up to here with the bank and am ready to leave. Has anyone left an LPL bank program to go indy?? I need any guidance I can get. I'd like to stay with LPL if possible, but as I understand it, LPL's obligation is to the bank rather than the rep, so I'm wondering how LPL handles situations like this.
You'll get all kinds of speculation on here, but wouldn't the simplest way to find your answer be to just call LPL and ask them?
1. Your production is not enough to establish your own office with LPL.
2. Most likely, your bank and LPL has contract language protecting the bank from situations like you are describing. Even if they don't, I would guess that LPL would be pretty reluctant to make the bank angry over your defection. It's a simple numbers game for them...your $100K production vs. total bank production.
I feel for you because I've been there...new "improved" comp grid from bank management practically every year. Each one designed to make us work more for less. If you don't mind telling us, what did your old grid look like and what changes are proposed? Also, I agree with your assessment of LPL's platform...it's pretty good as far as I can see. Much better than my old bank platform at any rate.
My advice to you is to either suck it up or start looking for another employer, and just accept the fact that it will probably mean another platform. You could always reconsider LPL later when your production numbers are more attractive to them and the bank is further out of the picture. Good luck.
Thank you both for your replies. As described, LPL's obligation is to the bank, so I can't simply call and inquire seriously without red flags going up all over the place and my employment being compromised.
I understand that my gross isn't enough to establish my own LPL office, but my timeline is somewhat longer. I may not make this move for another year, giving some time to increase production enough to convince LPL to allow my own office.
I am the registered principal of the office, so that gives me some hold on things. I also have a copy of the LPL-Bank contract, and from my amature assessment, it doesn't seem to have specific language addressing this situation, but regardless, they wouldn't make any decisions in my favor, I am aware of that.
Old Grid: 38.75% on the first $40k, 40% on the next $40k, and increasing by 1.25% on each $40k thereafter with no ceiling.
New Grid: 35% on the first $100k, 40% on the next $100k, and increasing my 5% on each of the next $100k up to a ceiling of 55%.
The new grid, from what I've heard, is still somewhat generous compared to other bank programs, but our program also profiting 17%-20%, double and sometimes triple comparable bank programs. The new grid isn't the only reason I've had it with the bank. Whats your feedback on the grids?
If it wasn't possible to stay with LPL, what other B/Ds are comparable or better? Has anyone left LPL for another B/D? How was your experience?
My grid was 30.5% on the first 40K, so yes...your grid is even now, better than mine is, but that point is almost irrelevant. The real issue is that banks are notorious for making you run faster and faster for the same or very little more money, s most likely, you'll see another grid in the future less generous than even your new one.
...and yes, I certainly had other issues with my bank also. By the time I left, I was so sick of mandatory meetings, pep sessions, sales training, pipeline reports, etc.,etc.,etc. that the money didn't matter anymore.
I think Raymond James is very comparable, but again, I think their minimums are at least $200K annual production. I'm not sure what Commonwealth's minimums are, but from what little I know, they appear pretty sound also. As far as W-2 brokers go, I would look at AG Edwards. Good luck...