LPL Financial is actively assessing its operations to make the firm more attractive to RIAs, according to news reports.
Independent broker-dealers and RIAs have both experienced healthy growth over the past nine years, and while LPL has been very active in the IBD scene, it’s now focusing on the RIA side, Rich Steinmeier, LPL’s new head of business development, tells ThinkAdvisor.
“We participate very fulsomely in the IBD market and we’re going to be much more intentional about how we make sure we’re supporting RIAs [and] hybrid RIAs,” he tells the publication. “I would tell you it’s an area of emphasis for us right now, and will continue to be.”
A “couple hundred” advisors affiliated with LPL have dropped their Finra licenses and now run as RIAs only, while several hybrid RIAs are also still on its broker-dealer platform, ThinkAdvisor writes. A year ago, however, LPL decided it was time to pay more attention to advisors dropping their broker licenses, Steinmeier tells the publication.
“We have [RIAs] that are already affiliated with us, but what you’ll see from us is that we are at our core … a broker-dealer chassis,” he tells ThinkAdvisor.
To that end, LPL is taking a look at its product offerings to ensure it offers “an uncompromised platform for RIAs” and is assessing its products, policies and procedures that could still be geared toward broker-dealers, according to Steinmeier, the publication writes. And these changes will make LPL “much more successful in the not-too-distant future” in recruiting RIAs, he tells ThinkAdvisor.