LPL Financial says it has rolled out Independent Advisor Institute to link new advisors with veteran registered representatives.
As part of the program, the independent broker-dealer helps advisors identify and hire qualified associate advisors. It also subsidizes associate advisors’ compensation for the first year and provides them with structured training and development support.
“The Independent Advisor Institute is designed to help overcome the hurdle of hiring and training a new advisor, enabling LPL advisors to remain focused on their clients as they gain a resource for growth,” according to Jeffrey Czajka, vice president for corporate strategy. “In addition, it helps to secure the future of advice in the independent space.”
The next group of IAI trainees will join the program in January, and the IBD plans to grow the program next year. At the start of 2018, 20 managing advisors were paired with associate advisors, who have been receiving training, financial and other support.
According to the U.S. Bureau of Labor Statistics, the demand for advisors should grow by 30% between 2014 and 2024; however, about half of all FAs plan to retire over the next 14 years, according to a 2016 Cerulli report.
“At the end of the program, we believe advisors will have a trusted partner who understands the drivers of their business and is invested in the firm’s success,” Czajka explained.
Advisor Tim Kelly, who took part in the pilot rollout of IAI and has over 20 years in the business, said in a statement: “The best way to create value in your own business is to have someone to come in behind you that’s going to take over.”
In his case, his son Cole was set up as an associate advisor with Discovery Financial Centers of Red Wing, Minnesota, through the program.