LPL Financial CEO Dan Arnold said the independent broker/dealer aims to become the market leader in the advisor-centered model in the next 10 years, and the firm will invest $1 billion a year in new capabilities and resources for its 17,000 advisors to reach that goal.
Speaking at the firm’s annual Focus conference held virtually this week, Arnold outlined four initiatives the firm plans to invest in, the first being further expanding its affiliation models, “creating more flexibility in how you structure your business around your unique talent and local resources.”
Earlier this year, the firm went live with its new premium affiliation model, dubbed Strategic Wealth Services, designed for advisors coming out of the wirehouse and regional firms. The model is aimed at taking some of the more entrepreneurial tasks involved in starting and running a practice off advisors’ shoulders.
The firm also just recently started recruiting into its new W-2 employee model, which was seeded through its acquisition of Allen & Co., a Lakeland, Fla.-based broker/dealer and RIA. LPL outlined the details of the offering, which includes payouts ranging from 50% to 70%, depending on an advisor’s production; no platform, transaction or administrative fees; access to a client service associate; employee benefits; Class A office space; and a technology stack. The model also allows for advisors to have their own brand and website.
The second area of investment will be in the firm’s capabilities to help advisors engage with clients through an “omnichannel approach, streaming and digitizing your workflows through ClientWorks,” Arnold said. The firm will also expand the investment content available on its advisory platform while lowering the cost for advisors.
Third, the company will work to finalizing the shift of its service model to a customer-care model, an initiative the firm has been working on for some time.
“That will deliver a unique experience, taking the best of human expertise and empathy and matching that with technology-enabled accuracy, speed and accessibility to delight both you and your clients,” he said.
Lastly, that money will go toward helping existing advisors grow their businesses.
“By offering the ability to outsource key business functions at an affordable cost and supplying the capital and solutions you need to grow, operate and protect one of the most important assets you have—your business,” Arnold said.
Amid a gloomy and uncertain time, Arnold offered a positive outlook for the advice industry, saying that the demand for advice continues to grow and that the pandemic is expected to accelerate that demand in the future. Cerulli Associates now predicts assets in the advisor channel to grow from $22 trillion today to $35 trillion by 2030.