LPL bounces back with big hybrid pick-up
Score one for LPL Financial.
As rumors of a sale continue to swirl, and after losing a $460 million team to Raymond James earlier this month, the nation's largest broker-dealer rebounded with the addition of Integrated Financial Partners. The Waltham, Massachusetts-based RIA has 20 offices around the country and 135 advisers.
The firm left Lincoln Financial Advisers and has not yet filed a Form ADV, but IFP President Paul Saganey says the new hybrid RIA and broker-dealer oversees approximately $4 billion in client assets.
Reports of a possible sale of LPL had "no impact" on his decision to join the IBD's custodial platforms, Saganey says.
The recruits switched over to the independent channel of the regional firm.November 28
Amid reports of a possible sale, assets rise and expenses fall.November 3
Instead, Saganey says he was "very impressed" by LPL "leading the industry in preparing for the DoL's fiduciary rule." He also called LPL "the most successful organization at helping groups, our size, establish a hybrid model" and praised the IBD's new ClientWorks technology.
ACCOUNTING FIRM PARTNERSHIPS = 'REVENUE BOOST'
LPL also proved to be a good fit for IFP's 20-year business model of partnering with independent accounting firms around the country, according to Saganey. IFP negotiates a revenue split with accounting firms to get access to high net-worth clients, which results in a "significant boost" in adviser revenue, Saganey says.
The CPA partnerships account for about 75% of IFP's high-net-worth clients, and the average net worth of the firm's clients is between $5 million and $10 million, Saganey says.
IFP will be expanding to three new markets in the next few months, opening offices in San Diego, Chicago and Austin, Texas.
Regardless of the legal fate of the fiduciary rule, consumers will continue to demand transparency, Saganey says. "Clients are demanding to know what the fee structure is and the value of what they're receiving," he says.