LPL Financial announced Thursday a new platform, available to all its independent contractor-representatives, reps who are employees of the banks and credit unions who work through LPL, and hybrid and RIA-only advisors, called the Fee-Based Variable Annuity (FBVA) Platform, that provides access to lower-cost variable annuities from five VA manufacturers.
The products will be available on LPL’s Strategic Asset Management and Strategic Wealth platforms used by reps who use the LPL corporate RIA, and hybrids and RIAs, respectively.
Four of the five manufacturers have made existing VAs available on the fee-based platform, while the fifth—Allianz—has created a VA specifically for the new program, said LPL’s John Moninger (left) in an interview on Thursday with AdvisorOne.
Moninger, executive VP for LPL and head of its Advisory and Brokerage Solutions unit, said LPL first conducted “extensive due diligence” on the universe of VA manufacturers, and chose five who were willing to make “a commitment for education” to LPL’s advisors, many of whom may not have been extensive users of VAs in the past. Moninger said LPL also asked for a “commitment to marketing VAs differently,” taking into account fee-based advisors’ consultative rather than product-driven approach to clients, and sought from them a further “commitment to partnering with us on integration with data.”
LPL required, on behalf of its fee-based advisors, “fully integrated account opening and reporting” so that clients could see what they were buying and what they were paying for the VAs: “They needed to be on board for that,” Moninger said.