Highways aren’t the only destination for hybrids anymore.
LPL Financial, the nation’s largest independent broker/dealer, announced Feb. 19 that the Hybrid RIA platform it introduced last October had reached more than $1.3 billion in assets under management in its first three months of operation.
The impressive figure testifies to the expected migration of wirehouse advisors to the independent RIA channel and the corresponding need for custodians that can accommodate both fee-based and commission business.
But accommodating a hybrid book may not be enough.
LPL claims to be the first to provide independent advisors with a “truly single, integrated platform” for RIAs and hybrid advisors who want to effect a seamless merger of their fee and commission business. In addition to centralizing all aspects of an advisor’s business on a single integrated platform, the program allows advisors to select which business model is appropriate for individual clients, “without pressure to steer them toward specific products, model portfolios or programs,” says Gary Gallagher, executive vice president for registered investment advisor services. “They have access to an open architecture investment platform that provides a comprehensive range of investments.
Because our integrated platform supports both fee-only and fee and commission business, we can manage across their whole book,” he adds.
The program also provides dedicated compliance support and technology and business solutions from LPL’s Service 360 team. “Some of the advisors who joined us were RIAs before, some have evolved as a result of our ability to support them,” Gallagher continues. “One of the things we do is to take a highly consultative approach to helping them understand what it takes to become an RIA, and to help them through that as well as transferring business onto the platform.”