LPL Rolls Out HNW 'Private Wealth' Channel

By Janet Levaux

News November 15, 2023 at 10:49 AM

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LPL Financial says it is introducing a new affiliation model for advisors focused on serving clients with at least $5 million in assets.

The firm now serves about $130 billion in high-net-worth assets. Overall, its 22,204 advisors work with roughly $1.2 trillion in total client assets.

LPL plans to share tools for advanced estate and philanthropy planning, income tax strategy, trustee services, lending, life insurance planning and alternative investments with advisors joining this channel.

"Private Wealth allows advisors the same full support of working in a wirehouse, without the common downsides of grid changes, growth targets, household minimums and proprietary products," said Gary Carrai, head of Advisor Business Lines, in a statement.

The new channel "represents the best of both worlds — exclusive access to specialized teams and resources vital to supporting the needs of high-net-worth investors while enjoying all the benefits of independence, all while earning up to 50% higher payouts than the average wire," Carrai added.

The independent broker-dealer recruited $31.2 billion in assets during the third quarter of 2023 and added 404 new advisors. In the period, some $5 billion in assets moved onto its platforms due to its new affiliation models, according to Richard Steinmeier, head of business development.

"We are strengthening in the way that individual advisors and groups of advisors are choosing to come to [LPL] in a much more material way even than Q2 2022," Steinmeier told ThinkAdvisor in late November.

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