As the broker/dealer industry moves, seemingly inexorably, to the fee side of the business, one specific independent B/D–LPL Financial–has taken what might be considered the logical next step: becoming a custodian to non-affiliated RIAs as well as dually registered advisors. LPL announced May 5 that it was starting just such a new line of business, with a late 2008 rollout, under Gary Gallagher as executive VP and head of RIA Services (see news story on page 23). Gallagher, formerly with Fidelity’s custodial unit for RIAs, will report to LPL Financial President and COO Esther Stearns and will be based in Boston. In an interview with IA’s Kara Stapleton, Gallagher said that the new custodial arm “will certainly be able to satisfy any existing LPL advisor that desires to change their business model,” but also noted that LPL Financial is “very interested in seeing the response externally. We think it will be very strong.” In announcing the initiative, LPL Financial CEO Mark Casady said he expects it to be a “key growth driver” for both the company and its “advisors’ businesses in 2008 and beyond.”
About 30 advisors added $1.3 billion in assets to the business over an 18-month period, according to an executive.
Advisors who provide rollover advice must exercise caution to ensure compliance with both regimes.
Senior staffers provided tips at the regulator's institutional conference.
Sponsored by FMG Suite
Finding the right marketing solution for your advisors.
Sponsored by Smarsh
Review these scenarios to make sure you avoid FINRA & SEC penalties.
Sponsored by Smarsh
It’s easy for modern communication methods to expose your firm to risk. Find out how to ensure you remain compliant!
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.