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Author: rafferty

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LPL Financial push for employee model attempt to tap into $11 trillion market

21:05 25 June in In the News by rafferty

June 25, 2019 By Bruce Kelly, Investment News Advisers working for wirehouses and regional firms control vast amounts of assets that LPL would like to bring under its umbrella At a time when broker-dealers are increasingly trying to come up with business models for advisers who want to act as registered investment advisers, recent moves by LPL Financial left some wondering if the firm was taking a step back in time. LPL Financial, the largest broker-dealer with an independent contractor model, raised some eyebrows in May when it said it was adding an employe channel for advisers who want to work directly for the firm. To that end, LPL Financial's parent company, LPL Financial Holdings Inc., last month said it was buying a small employee model broker-dealer in Florida, Allen & Co., with 30 advisers and...

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4 Reasons Small BDs Are Under Pressure

15:29 07 June in Articles Written by Jon Henschen by rafferty

June 6, 2019 By Jon Henschen, ThinkAdvisor Though BDs in general are seeing higher profits, several trends are mounting against smaller firms. Higher interest rates are enabling money market accounts, sweep accounts and margin accounts to contribute noticeable profit increases to the bottom lines of some broker-dealers. But though we’ve seen a bump up in profitability for BDs in general, we also see some worrisome trends unique to smaller organizations, which will work against their future survival. Here are the four trends most affecting small broker-dealers today: Fewer mutual fund sales and more ETF sales; Fewer REIT and alternative investment sales; More retiring advisors, lower rates of succession plans and recruiting difficulties; as well as A lack of scale, which puts them at a disadvantage on the services they offer, their technology and profitability Lower...

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LPL Cuts ETF Fees for RIAs

21:00 30 May in In the News by rafferty

May 30, 2019 By Janet Levaux, ThinkAdvisor Transaction costs for State Street, Invesco and WisdomTree ETFs will drop to $4.95 in the second half A week after LPL Financial said it would add an employee advisor channel to its operations, the independent broker-dealer said it is cutting the transaction costs of some ETFs on its RIA platforms to $4.95 from $9 later this year. Along with Fidelity and Schwab, TD Ameritrade Institutional gives RIAs and investors access to a large number of commission-free ETFs. In June, the number of TD Ameritrade Institutional’s commission-free ETFs will nearly double, jumping to 569 exchange-traded funds from 314; the funds will come from 21 providers and cover about 90 Morningstar categories. LPL Plans In the second half of 2019, transaction costs for State Street, Invesco and WisdomTree ETFs will drop to $4.95...