LPL Financial has launched a new training program that matches existing advisors with those just coming into the industry in an effort to provide a career path to young advisors and a possible successor to those on the brink of retirement. The Independent Advisor Institute, as it’s called, held a pilot earlier this year, with 20 managing advisor/associate advisor pairs. The next class starts in January.
“Advisors have the desire and need to develop the next generation—both for near-term growth and longer-term succession considerations,” said Dimple Shah, LPL executive vice president, Corporate Strategy. “Sourcing and developing advisors, however, is a new skillset and a big investment of time and money. IAI is offsetting some of these pain points for advisors.”
This isn't the firm's first crack at a training program, however. In April 2012, LPL launched a subsidiary, later renamed NestWise, targeting the mass and middle markets. The venture, headed by Esther Stearns, was supposed to be a training ground for younger advisors and career changers. The unit acquired Veritat, a registered investment advisory firm that used a proprietary online financial planning platform designed to support advisors who serve the mass market, to assist in its efforts. But the firm shuttered the unit in August 2013, laying off Stearns and other NestWise employees.
Previously, LPL offered some training for new advisors in the way of help with technology, tools and resources, as well as education on business growth and efficiency. IAI is a structured program that will provide training on licensing exams, financial acumen and client development skills. LPL will deliver the training in person and remotely.
LPL will help existing advisors find and hire qualified associate advisors, but there’s an emphasis on finding veterans and women, Shah said.
The firm will subsidize the new advisors’ compensation for the first year, a combination of salary and payout on production.
“The best way to create value in your own business is to have someone to come in behind you that’s going to take over,” said Tim Kelly, vice president at Discovery Financial, which participated in the pilot.