Two weeks after announcing plans to create a fee-only offering for its registered investment advisors, LPL Financial has recruited a new advisor with $1.1 billion in assets under management who will operate under its new compensation model.
The advisor, Peter Heilbron of Trace Wealth Advisors, is joining LPL from Northern Trust Wealth Management. Based in Sherman Oaks, California, Heilbron said he chose to join LPL for its technology and business model flexibility.
"The fee-only model provides me the freedom to run my business my way," he said. "LPL's independent platform is ahead of the curve."
More advisors are looking at fee-only compensation in 2019, with turnkey asset management platform SEI Advisor Network predicting that 66% of advisors will choose fee-only models this year. SEI expects commission-based compensation to continue to decline, with one in four advisors opting for commission-based income in 2019.
LPL Financial Managing Director Rich Steinmeier emphasized the importance of being flexible on pricing to attract new advisors.
"As the industry continues to evolve, we are able to use our leadership position to invest, innovate and evolve our platform to meet advisors where they are," Steinmeier said. "That includes providing a choice of business model."