LPL Financial says its advisors can now use the fee-payment processing tool AdvicePay to directly invoice clients and take onliine payment.
AdvicePay was created by advisors Michael Kitces and Alan Moore to facilitate fee-for-service financial planning. It lets advisors accept payments via credit card or electronic bank transfers using ACH.
“More advisors are adopting planning in their practices to be able to expand their value with clients …, and now we can offer advisors access to AdvicePay, which provides a flexible and convenient solution to bill for those planning services,” according to Rob Pettman, LPL Financial executive vice president, Investor and Investment Solutions.
LPL has some 16,763 affiliated advisors and $670 billion in total client assets, about $322 billion of which are fee-based (or advisory) assets. Last week, it said it planned to open a technology hub in Austin, Texas.
Advisors can “expand the reach of their services via alternative pricing models, such as subscription models, retainers or hourly arrangements,” said AdvicePay co-founder Michael Kitces, in a statement.
This development, “in the midst of recent market and economic volatility, is especially compelling as a way for financial advisors to ensure they can be properly compensated for all the advice they are providing,” Kitces explained.
Other large AdvicePay clients include Schwab Advisor Services and Cetera.
Kitces responded: “Yup, seeing this first hand at @AdvicePay. The shift is real.”
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