LPL Financial is pushing to expand services for high-net-worth clients. In the company's most recent move, its wholly owned Private Trust Co. subsidiary has announced strategic plans to build on its rapid growth of 25% over the last three years.
With an eye toward offering specialized services for LPL's wealthier clients, Private Trust has recently hired new executives, expanded its office space by nearly 30% and began investing in its technology platform in order to support growth, the company announced. It also has begun to market its services more aggressively.
Cleveland-based Private Trust, which now employs 25 professionals, currently provides trust administrative services for more than $935 million in individual and family assets, and also serves as custodian for $74 billion in IRA assets.
SERVING LPL CLIENTS
LPL encourages high-net-worth clients to use the experts at Private Trust for professional trust administrative services while outsourcing investment management services, the company says.
“The trust and estates sector is witnessing a significant evolution as clients increasingly opt to work with independent advisors who can bring flexibility and customization to the management of trust assets,” said Bethany Bryant, who was named president of Private Trust in May 2012, in a statement. “With its open architecture model of fiduciary services, [Private Trust] does not impose wealth management products or rigid models on our customers. Rather, we enable – and encourage – clients to maintain their relationships with their trusted financial advisors, while we serve as trustee or co-trustee."
Private Trust reported that its strong growth has been driven principally by the flexibility of its business model within the trust administration space. The model uses an open-architecture approach, aimed at giving high-net-worth individuals and families the flexibility to select their own trusted financial advisors, LPL said.
“[Private Trust] is well positioned to capitalize on the new opportunities we are creating as it works to address the needs of high-net-worth families and individuals,” Andrew Putterman, managing director of High Net Worth Services at LPL Financial, said in a statement.
Private Trust said it has hired Jack Keane, a seasoned finance and operations executive, as vice president, and finance and administrative officer. Prior to joining Private Trust, Keane held executive positions at National City Corp., where he was chief financial officer for its Institutional Asset Management Division. He also served at KeyCorp as chief financial officer of the Victory Funds. Private Trust plans to bring on additional trust officers this year.
Private Trust also hired Carolyn Neuner as assistant vice president and trust officer. Neuner will be responsible for the service and retention of trust accounts and wealth management clients, and will provide guidance and implementation of estate plans for intergenerational high-net-worth clients. Before Private Trust, Carolyn Neuner served as vice president of personal trust administration at TIAA-CREF Trust Company. Prior to joining TIAA-CREF, Neuner spent 31 years in a variety of senior trust and leadership roles at Bank of America.