LPL offers plan to guarantee value of adviser’s business

LPL offers plan to guarantee value of adviser’s business

The plan is designed to prevent financial disruption if an adviser dies or makes some other unexpected exit from the business

LPL Financial has launched what it calls its Assurance Plan to protect the value of an adviser’s business in the event of the adviser’s death, permanent disability or other unplanned exit from the business.

In the case of such an event, LPL said its plan will provide a guaranteed, predetermined minimum purchase price based on a multiple of the adviser’s recurring revenue.

[More: 5 challenges facing successful independents]

LPL said it also will facilitate the sale of the adviser’s business to another qualified LPL adviser, commission-free, which can provide additional proceeds above the guaranteed amount to the adviser or his or her family.

[More: RIAs may be heading for a ‘succession planning crisis’]

Recent Articles by Author

JPMorgan Chase penalized $250 million for risk management failings

JPMorgan Chase penalized $250 million for risk management failings

Regulators found that the bank's asset and wealth management businesses lacked controls to avoid conflicts of interest

MAI Capital Management acquires $500 million RIA

MAI Capital Management acquires $500 million RIA

St. Louis-based Greenway Family Office is MAI's second acquisition of 2020

ESG investing can foster cohesion in wealthy families, Barclays finds

ESG investing can foster cohesion in wealthy families, Barclays finds

The study suggests younger generations are influencing their elders and persuading them to act

X
X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print