LPL acquires UVEST

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Aug 16, 2006 11:42 pm

I understand that there are many indy's that use the LPL platform on this site.  How does this deal effect you......if at all?  I have been reading the articles on this and am interested on getting some insider takes.


thanks

Aug 17, 2006 9:02 am

I think it will affect UVEST moreso than LPL. 


What does everyone think about this as an acquisition to diversify LPL's rep platform into multiple channels, to make an IPO more attractive?

Aug 17, 2006 9:46 am

It looks to me as if LPL is positioning for the IPO!


I am with LPL and the IPO scares me! There are several  worst case's out there say for example we get taken over by Bank of America or a JP Morgan or a Insurance company any of these three would & could use LPL as there indy side! What a nightmare and imagine how that would tarnish all the LPL reps business's to be linked to any one of those companies!


If this was to happen there would be a mass exit. What a nightmare! It is never easy to move clients! No matter what! 


I will not loose sleep over this IPO it is on my mind.

Aug 17, 2006 9:53 am

How does being absorbed into Bank of America, JP Morgan, or an insurance company play into the IPO idea?

Aug 17, 2006 10:05 am
BrokerRecruit:

I think it will affect UVEST moreso than LPL. 


What does everyone think about this as an acquisition to diversify LPL's rep platform into multiple channels, to make an IPO more attractive?



BR-LPL is already heavily exposed to this program through its F.I.S. division.  I would estimate that more than 20% of their advisors are working in banks or credit unions.

The IPO is really not a major concern IMHO.  I have a contractual relationship with LPL that acknowledges I own my business and I have a right to terminate that contract with 30 days notice.  I operate under my own brand name.  If I needed to make a change, it would be an entirely different matter in the minds of my clients.  "Mr. Jones, the service from XYZ broker/dealer has deteriorated to the point that I've decided to retain a different vendor for your benefit and mine.  The paperwork is on the way."  Simple.

The reality of that situation is not lost on management at LPL.  If anything, it's baked into their culture and their service philosophy and keeps them honest in terms of executing on their business mondel.  If at some point the new owners-or managers they install don't get that, things will probably change for the worse, and I'll have to make a decision at some point.

Ultimately, however, because of the nature of my business relationship with them it would merely be a hiccup, a major inconvenience to be overcome.  Nothing like if I was going to try to leave Merrill Lynch and move to Smith Barney or Bank of America.

Aug 17, 2006 10:08 am
Greenbacks:

It looks to me as if LPL is positioning for the IPO!


I am with LPL and the IPO scares me! There are several  worst case's out there say for example we get taken over by Bank of America or a JP Morgan or a Insurance company any of these three would & could use LPL as there indy side! What a nightmare and imagine how that would tarnish all the LPL reps business's to be linked to any one of those companies!


If this was to happen there would be a mass exit. What a nightmare! It is never easy to move clients! No matter what! 


I will not loose sleep over this IPO it is on my mind.



See my prior post on your concerns.

Best thing you can do is to focus on the health of your business and the strength of your relationship with clients, and if things take a turn for the worse then you make a decision to do what you must do.

Until then, any time spent worrying about the situation is wasted for the most part.

Aug 17, 2006 10:21 am

Joeboy, you've been with LPL for several hours now--what makes you an expert on their dedication to the business model and all that jazz?


What percentage of your book at USB followed you out of state and to the Mom and Pop practice that you set up?


You're whistling past the graveyard if you think that people just sign ACATs because you put it in front of them.


They might do it once, but if you try again they're going to think you're a flake and decide to call the branch manager at their local Merrill office.


Lots of people call the branch manager with a, "I'm getting concerned about my current broker and would like to come into Merrill to discuss how you might be able to help me."


That manager invites them in, sits and talks about their situation then calls out to his assistant and says, "Have the new kid, the one who locks his keys in the trunk every several days, come in.  I want Mr. and Mrs. Johnson to meet him....."


Going "Indy" does nothing except delay the days when you get to say, "Sir may I recommend a tie or two to go with your new suit?"

Aug 17, 2006 10:54 am
NASD Newbie:

Joeboy, you've been with LPL for several hours now--what makes you an expert on their dedication to the business model and all that jazz?


What percentage of your book at USB followed you out of state and to the Mom and Pop practice that you set up?


You're whistling past the graveyard if you think that people just sign ACATs because you put it in front of them.


They might do it once, but if you try again they're going to think you're a flake and decide to call the branch manager at their local Merrill office.


Lots of people call the branch manager with a, "I'm getting concerned about my current broker and would like to come into Merrill to discuss how you might be able to help me."


That manager invites them in, sits and talks about their situation then calls out to his assistant and says, "Have the new kid, the one who locks his keys in the trunk every several days, come in.  I want Mr. and Mrs. Johnson to meet him....."


Going "Indy" does nothing except delay the days when you get to say, "Sir may I recommend a tie or two to go with your new suit?"



I have been with LPL over a year now.  So perhaps you should get your facts straight.

Before I joined LPL I spent over a year investigating alternatives, and then six months planning my transition before I pulled the trigger. 

Regardless, while you may have a few more years in the industry than I, I dare say the time I spent on due diligence qualifies me as an expert on the indy business model compared to you.  No offense intended, but in your posts you consistenlty display biases that are common to fellows who have spent their entire careers being brainwashed in the wirehouse culture.  There are just things that you guys 'don't get'.  You can't get past your own perceptual screens.

Approximately 65% of my clients followed me as I changed firms and simultaneously moved halfway across the country.  Measured by the accounts I actually wanted the number was closer to 80%.  One could always wish for more but given the circumstances I find that to be a perfectly acceptable result.

Yes I suppose if I were to make a change in the short term it would be problematic to move some of my clients.  But I was referring to longer-term concerns, and only potential problems and my reaction to them.  The reality is that I'm extremely happy with LPL and haven't seen any problems as a result of the change in ownership.

Too, folks who have decided to cast their lot with an independant professional in private practice are unlikely to return to cast their lot with a securities salesman in the employ of a large anonymous corporation.  It's an entirely different mindset that doesn't appeal to those folks.

I find your reference to selling ties rather ironic in light of the fact that you were downsized and now pass your time posting drivel on the RegRep board about your glory days in management.

Aug 17, 2006 11:01 am
joedabrkr:



I have been with LPL over a year now.  So perhaps you should get your facts straight.


Like I said, you've been with LPL for several hours.  Have you been inthe business ten years yet?



joedabrkr:



I find your reference to selling ties rather ironic in light of the fact that you were downsized and now pass your time posting drivel on the RegRep board about your glory days in management.


Downsized?  Nah, I am 61 and had 35 years of service.


I was posting on this board before I formally left because I was around in case my replacement needed to know things--you know, transitioning.

Aug 17, 2006 12:45 pm

So we're now agreed that you are a liar, NASD.