Ameriprise Financial Inc. has experienced the defection of another top representative, this time a leading producer in its franchisee group, to
LPL Financial Services.
Charles Zhang, who has consistently been Minneapolis-based Ameriprise’s No. 1 producer this decade, left the firm on Jan. 2 to become affiliated with LPL of Boston and San Diego.
“We think LPL’s platform is a better fit for us,” said Mr. Zhang, the managing partner of Zhang Financial of Portage, Mich.
“We like to have an open platform.”
Mr. Zhang added that he thinks that the greater variety of investment choices on LPL’s platform would give his firm a better opportunity to work with clients as a fee-based adviser.
Although Minneapolis-based Ameriprise is known for its
financial planning offerings and training of reps, a common criticism of the company has been the lack of depth in its platform and its reliance on proprietary or home-grown products.
Though company executives disagree, observers have said Ameriprise’s platform simply doesn’t stack up (InvestmentNews, May 29).
Mr. Zhang said that his firm controlled about $800 million in client assets, with half those managed directly by his firm and the other half managed outside the firm.
Mr. Zhang isn’t the only big-name producer recently to leave the Ameriprise fold, which has three brokerage platforms that total 12,000 advisers and reps.
The platforms include one for franchisees, one for employees and a separate firm, Securities America Inc. of Omaha, designed for independent-contractor reps.
In November, Securities America lost one of its biggest-producing reps, Raymond J. Lucia and his eponymous company, to First Allied Securities Inc. of San Diego (InvestmentNews, Dec. 10).
At the time, an industry source pegged his company’s production at $15 million in fees and commissions.
Ameriprise, however, feels good about its franchisee business.
“Our overall franchisee retention and retention rates are as high as they’ve ever been,” said Chris Reese, a company spokesman.
For the full report, see the upcoming Jan. 14 issue of InvestmentNews.
