LPL’s Latest Shot in Tech ‘Arms Race’: Naming Ex-IT Exec to Board

"A board appointment like this shows that LPL is willing to do what it can to ensure that its IT capabilities are first rate," Elzweig said in an interview. "The fact that they're a public company and one of the largest players in the independent space gives them the heft to do so."

Technology is becoming a key point of differentiation in the advisor business, he notes. "There's something of an arms race going on as firms roll out their next generation offerings."

But at least one expert believes that hiring an ex-Xerox leader isn't necessarily good for LPL's IT strategy and focus.

"LPL has been committing capital to key technology positions of late but I'm not sure if a former chairman of Xerox would reflect a strong positive—when you consider that Xerox is a shell of their former self, failing to capitalize on technologies that companies like Apple profited from," said the recruiter Jon Henschen in an interview.

Still, LPL's success at adding advisors, acquiring firms and improving its IT platform has produced very powerful results of late, according to Roame, which (hopefully) Mulcahy can help the firm further capitalize on.

"The evolution of LPL is amazingly impressive," he said. "A decade ago, almost all IBDs were small-siloed private firms which lagged behind industry trends and never led much of anything. LPL has transformed itself into a multichannel, successful, leading-edge firm under the direction of Mark Casady."