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LPL Hires BofA Exec as Chief Risk Officer

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LPL Financial has hired Thomas Cappello, CFA, as executive vice president and chief risk officer. Cappello took over his new role — which makes him responsible for enterprise, business and product risk management — on Monday and now reports to Chief Legal Officer Michelle Oroschakoff.

Most recently, Cappello served as CRO for Bank of America’s Investment Solutions Group, which included oversight of material risks related to investment advice, strategy and products across Merrill Lynch and BofA’s Private Bank.

Prior to that, he was head of operational risk for UBS Wealth and Asset Management. He started his career in 2002 as a financial advisor at UBS.

“Tom brings a risk-ready mindset and vast wealth management experience, which will allow him to champion an effective enterprise-wide risk management framework across all of LPL’s business units,” according to Oroschakoff, who joined the firm in 2013 from Morgan Stanley.)

The news comes about two months after LPL rolled out its employee advisor channel, which offers advisors payouts of 50% to 70% of revenues and charges no platform, transaction or administrative fees. It aims to attract advisors employed by the wirehouses and other large broker-dealers.

Last week, the firm said BMO Harris Financial Advisors will move some $14 billion in brokerage and advisory assets and 115 financial advisors onto its platform by the middle of next year. (The group is the retail brokerage and advisory business of BMO Harris Bank of Chicago.)

“There are a number of macro trends in the marketplace that make LPL’s evolving platform ripe for expansion, and I’m excited for the opportunity to help lead the firm into this new era of advice,” Cappello explained in a statement.

“At a time when investors need the trusted guidance of a financial advisor more than ever before, I’m proud to be part of a firm that is entirely focused on serving the needs of advisors, RIAs and institutions and the important work they do for their clients,” he added.

LPL ended the second quarter of 2020 with 16,973 independent advisors, up 812 — or about 5% — from the year-ago quarter, and up 251 — or about 1% — from the prior period. The firm’s total assets stood at $762 billion as of June 30, with overall net new assets in Q2 hitting $13 billion.