LPL Financial: As the advice indus- try struggles to get more advisors to embrace succession planning, LPLhas introduced Assurance Plan, a programthat helps “protect the value of an advisor’sbusiness in the event of an unplanned exit”due to death or permanent disability.
The plan also aims to prevent an advisor’s clients and family members “frombeing vulnerable to financial disruption,”according to the independent broker-dealer. Roughly 70% of indie advisors inthe U.S. lack a succession plan.
Assurance Plan offers advisors a minimum purchase price for a practice, basedon a multiple of the advisor’s recurringrevenue (or fees and commissions). Also,LPL handles the sale of the advisor’s business to another affiliated advisor with nocommission, “providing any additionalproceeds above the guaranteed amount tothe advisor or their family,” the IBD says.
“Advisors invest so much into serving their clients and building a businessthey can be proud of. But when it comesto protecting the value of their owngreatest investment, there has been alack of options,” Jeremy Holly, head ofAdvisor Financial Solutions, explainedin a statement.
“With this new solution, advisors have a safety net in place, whichgives them a layer of assurance as theyexplore the ideal plan they want in placeto transition the care of their clients andmonetize their practice when they areready,” Holly added.
LPL Financial’s tally of affiliated advisors was 16,763 as of March 31, up 574 froma year ago and 299 from the prior quarter.
“It’s always been challenging for finan-
cial advisors to devote time and attention
to succession planning,” according to
Tim Wyman, CFP, managing partner at
the Center for Financial Planning.
“But succession planning is critical,especially today … ,” Wyman explainedin a recent blog on ThinkAdvisor.com.Sometimes “the unexpected happens,and it can be disastrous without a succession plan in place. Market risk is agiven in our business, but we should allbe thinking about personal health andplanning for any eventuality.”
The St. Petersburg, Florida-basedIBD has launched the Pride FinancialAdvisors Network to support advisors,clients and other business partnersidentifying or working with members ofthe LGBTQ+ community.
The group’s official debut comesabout a year after the firm started introducing plans for the network at its advisor conferences.
“Our firm is about people. All people,”
Scott Curtis, president of Raymond James’
Private Client Group, said in a statement.
“Cultivating an inclusive environment
where everyone’s perspectives and con-
The Pride network, along with net-
works for black advisors, for female
advisors and for associates, is “integral
in our mission to further diversity and
inclusion within Raymond James and
our profession,” Curtis added.
The LGBTQ+ network’s formationhas been led by advisors Tom Hake andMarta Shen, as well as members of theassociated advisory council.
“A global pandemic and resultingtravel restrictions may have postponedour inaugural in-person Business ofPride Symposium, but it has certainlynot slowed our plans and efforts,” Shensaid in a statement.
Other broker-dealers, such as LPLFinancial, also have formed Pridenetworks.
“The Pride Financial Advisors Networkhas shown incredible dedication, enthusiasm and heart in their support of LGBTQ+advisors, their teams and clients,” saidRenée Baker, head of Raymond James’Private Client Group Advisor InclusionNetworks, in a statement.
Some three months after it lowered someperformance measures affecting compensation for its Thundering Herd, the Bankof America-owned wirehouse said inearly June that it would further ease salestargets due to the COVID- 19 pandemic.
The changes should lower the number of Merrill advisors likely to see theirpay trimmed by about 1,000, accordingto a Wall Street Journal report that citeda senior Merrill executive.
As of March 31, the advisor head-count was 17,646, up 111 from a year agoand 188 from the prior quarter. Average12-month fees and commissions peradvisor were $1.14 million.
“We recognize that some practiceshave been impacted,” said Andy Sieg, head
By Janet Levaux
IBDs & Wirehouses Roll Out New Programs, Tech
Innovation continues throughout the industry at this challenging time.