Recruiting slows to a trickle at LPL; pickup months away

CEO Casady says strong markets keeping advisers put though firm's pipeline building

Jun 11, 2013 @ 2:45 pm

By Bruce Kelly

LPL Financial LLC expects recruiting in the second quarter to sputter along, much as it did in the first three months of the year.

The independent-broker-dealer behemoth in the recent past has set an annual goal of recruiting 400 to 500 new registered reps and financial advisers. But in the first quarter of 2013, the company fell far short of that goal, recruiting just 25 net new advisers. That compares with 182 net new advisers in the last quarter of 2012.

Recruiting has been a struggle for many broker-dealers so far this year, and the independent-broker-dealer industry typically regards LPL as a bellwether for recruiting.

LPL's dismal recruiting performance is not about to change, according to chief executive Mark Casady, although he did offer a silver lining today in comments at William Blair & Co. LLC's annual growth stock conference in Chicago.

Mr. Casady said he anticipates recruiting to be much on the same level in the second quarter as in the first. The firm, however, has the potential of returning to more historic recruiting levels at the end of this year or the beginning of next year, he said.

LPL is “not as robust in recruiting, but we continue to see the pipeline building, and recruiting will get back to normal,” Mr. Casady said. The firm is also seeing “higher retention levels” for its existing sales force of 13,377 reps and advisers, and despite the fall of from norms, it “was still at No. 1 for net recruits in” the first quarter, when compared with its competitors, he said.

The broad markets have hit all-time highs in the first half of the year. That means the business environment “has been busy for advisers in the past five or six months,” and slowing down reps and advisers jumping to new firms, Mr. Casady said.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

What's the first thing advisers should do when they get home from a conference?

After attending a financial services conference, advisers can be overwhelmed by options, choices and tools. What's the first thing they should do when they get back to their office?

Latest news & opinion

Maryland jumps into fiduciary fray with legislation requiring brokers to act in best interests of clients

Legislation requires brokers to act in the best interests of clients.

8 apps advisers love for getting stuff done

Smartphone apps that advisers are using in 2018 to run their business more efficiently.

Galvin's DOL fiduciary rule enforcement triggers industry plea for court decision

Plaintiffs warned the Fifth Circuit that Massachusetts' move against Scottrade signaled that the partially implemented regulation can raise costs for financial firms.

Social Security underpaid 82% of dually entitled widows and widowers

Agency failed to tell survivors that they could switch to a higher retirement benefit later.

Is Fidelity competing with retirement plan advisers?

As the Boston-based mutual fund giant expands the products and services it brings to the retirement market, some financial advisers say the firm is encroaching on their turf.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print