LPL to lose mega hybrid RIA

$9.5-billion Independent Financial Partners to jump ship, create its own broker-dealer

Apr 6, 2018 @ 1:01 pm

By Greg Iacurci

Independent Financial Partners, a hybrid RIA with roughly $9.5 billion in assets under management and more than 500 advisers, plans to leave LPL Financial as its broker-dealer, according to two people with knowledge of the decision.

One of those individuals, who spoke on condition of anonymity, said IFP intends to create its own broker-dealer. IFP's time frame for executing these maneuvers wasn't immediately clear.

Spokespeople for both IFP and LPL didn't return repeated requests for comment by press time.

Independent Financial Partners, based in Tampa, Fla., serves as an office of supervisory jurisdiction for LPL.

The group has 568 individuals serving in an investment advisory role, 490 of which a registered representatives of a broker-dealer, according to its most recent Form ADV filed with the Securities and Exchange Commission.

IFP has $9.49 billion in discretionary AUM, and $27.4 million in non-discretionary managed assets, according to the ADV. About 70% of those assets are from individual wealth management and the bulk of the remainder from retirement plans, according to the filing.

The firm's overall assets under advisement total $40.5 billion, the filing says.

LPL, the largest independent broker-dealer in the country, has gone through a series of business transformations recently. Dan Arnold took over as chief executive of LPL in January 2017, replacing Mark Casady. Shortly thereafter, in August 2017, LPL announced it was buying National Planning Holdings Inc., an independent broker-dealer network with 3,200 advisers.

The firm has also instituted new policies that haven't been well received by some advisers. Two weeks after announcing the NPH acquisition, LPL said that it would begin requiring advisers who want to have an RIA outside of LPL to put at least $50 million of advisory assets under custody with LPL first.


What do you think?

View comments

Recommended for you

Featured video


Behind the scenes at Pershing Insite 2018

What goes on behind the scenes at one of the industry's biggest conferences? Join us for an all-access sneak peek!

Latest news & opinion

Mutual funds feel the pinch of platform fees

No-transaction-fee options are a big hit with investors, but funds wind up paying the costs — and passing them on.

Divorce reduces retirement readiness

The new tax law could increase financial challenges for divorced people, but planning opportunities abound.

Advisers with billions in AUM leaving Wall Street

Merrill Lynch has seen two teams exit recently, each with more than $4 billion in client assets.

Wells Fargo weighs changes to wealth unit

The move would reflect the bank's effort to cut $4 billion in costs.

Small broker-dealers seek legislative relief from annual audits

Bills introduced in House, Senate would remove PCAOB requirement.


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 It'll help us continue to serve you.

Yes, show me how to whitelist

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


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print