LPL Financial CEO Dan Arnold speaks at the firm's 2016 national event.
As it prepares to announce its third-quarter earnings results, LPL Financial has removed a hurdle for advisors seeking to join a hybrid registered investment advisory group.
On Monday, national sales and consulting Managing Director Andy Kalbaugh said the firm is dropping the $50 million advisory assets requirement for new or existing advisors joining a hybrid RIA practice.
Advisors looking to be part of a hybrid RIA with LPL and bringing less than $25 million in advisory assets to its platform, though, will be charged up to 5 basis points. When advisors grow to have $25 million or more in LPL-custodied advisory AUM, the fee will be eliminated, according to Kalbaugh.
The firm, though, appears to be keeping in place a fee for assets custodied outside the firm.
"It's good to drop the $50 million requirement," said recruiter Jon Henschen, in an interview. "But if advisors have under $25 million they get a charge. … And those custodying AUM outside the firm are charged [several] basis points."
"A lot of represents seem to be under that [$50 million] level," Henschen explained, "and I imaging that [LPL] got lots of pushback about that pushing for lowering of the bar."
LPL CEO Dan Arnold described the firm's "soul searching" over the $50 million bar this summer during its Focus conference in Boston.
