LPL Financial is putting a bigger emphasis on recruiting registered investment advisors than it has in the past.
Rich Steinmeier, LPL Financial’s new head of business development, spoke with ThinkAdvisor about the firm’s plans to better support and attract RIAs as part of its recruiting efforts.
Over the last nine years, independent broker-dealers have gained a net 22,000 advisors. Meanwhile, RIAs have gained a net 20,000 advisors, according to Steinmeier.
Those are the two highest growth channels in terms of the number of advisors, Steinmeier added.
“We participate very fulsomely in the IBD market and we’re going to be much more intentional about how we make sure we’re supporting RIAs [and] hybrid RIAs,” Steinmeier told ThinkAdvisor. “I would tell you it’s an area of emphasis for us right now, and will continue to be.”
About a year ago, LPL decided it needed to look hard at the advisors who are dropping their Financial Industry Regulatory Authority licenses, according to Steinmeier.
LPL currently has a couple hundred advisors that have dropped their broker license and operate strictly as RIAs. The firm also has hybrid RIAs that still use LPL’s broker-dealer platform.
“We have [RIAs] that are already affiliated with us, but what you’ll see from us is that we are at our core … a broker-dealer chassis,” Steinmeier said.