EDJ to LPL clarity

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Apr 20, 2012 11:47 pm

I have been in the business for 4 years.  I am preparing to go to LPL, but I am hesitant, here's why:

I started scratch but took over an office after a little over a year (25 million) from a broker that went to Wells.  I have 38 million now, most clients stayed with me at Jones (BOA is a pain in the ass, but she has been in office for 20 yrs.)

Is it realistic for me to think I can take anywhere near 50% of the assets? I have added value, I think, to my client relationships, but it's obviously what has me most nervous.  I do intend on heavily prospecting as well with my new found independence.

Ive reached the point where i need more options for my business, want to be more fee-based, and a myriad of other 'driving me insane' reasons...too many to list.


Apr 21, 2012 9:49 am

What you are talking about it going fropm a known firm to an unknown.  Its what I did about 7 years ago.

How many clients move is up to the relationship you have.  Are they hiring you?  or Jones?  Only you know that answer.  When I moved I focused on the 20% of the clients who provided 80% of the revenue.    While I dont recall the exact figure, I certainly moved well in excess of 50% of my former assets.

You have to be concerned with non-competes and legal issues like selling away, etc.  But you need to find out from the clients if they are loyal to you or to Jones. 

One thing to consider... As a CFP, you must follow the Code of Ethics.  There is a clause i nthere which requires you to notify clients of any change of contact (B/D.)  I used that clause to notify my clients when I left.  The old BD sent me a nasty letter.  I replied that I was only following what is required by the CFP.  And if they wanted to argue, they should sue the Board.  Never heard another word.

Good luck