LPL to keep trolling bank broker market

LPL to keep trolling bank broker market
Since 2020, LPL has signed three major agreements to provide retail brokerage and advisory services to banks and credit unions.
OCT 29, 2021

After a busy year-and-a-half striking deals to provide retail brokerage and advisory services to banks and credit unions, LPL Financial will continue to fish in the market of financial institutions, as it is known in the brokerage industry.

Since 2020, LPL has signed three major agreements with banks and a credit union. Two banks, BMO Harris Financial Advisors and M&T Bank Corp., have already moved financial advisers onto LPL's platform, with CUNA Brokerage Services Inc. to be finished next year. In total, those three retail banks and credit unions represent more than 800 advisers and brokers and about $70 billion in client assets.

And LPL is still eyeing the financial institutions market, Dan Arnold, the company's CEO, said in a conference call Thursday to discuss third-quarter earnings.

"Looking at the large financial institutions marketplace, we onboarded BMO Harris and M&T earlier this year and are applying the insights from those experiences to make our institutional offering even more robust and differentiated," Arnold said. "This innovation and marketplace momentum are helping drive a solid pipeline with a growing number of prospects."

"We're excited about the opportunities across both the traditional bank outsourcing markets — that's your bank and credit union — and then the new large institution market," he said. "We see our pipeline continuing to grow and without giving specifics, we have good confidence that we can continue to see the financial institution space as an ongoing sustainable and multiyear contributor to our organic growth."

LPL doesn't buy the banks it works with; rather, it serves as the back office for each bank's wealth management business.

Meanwhile, LPL continued to add financial advisers, and at the end of September reported a head count of 19,627. That's an increase of 513, or 3%, when compared to the prior quarter and 2,459, or 14%, compared to the same period last year.

LPL added approximately 280 advisers from Waddell & Reed in the third quarter, according to the company. During the quarter, LPL moved the remainder of $71 billion in Waddell & Reed client assets to its platform. LPL said at the end of last year that it was buying the wealth management business of Waddell & Reed as part of a larger, complicated transaction. 

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.