LPL Financial Launches Bespoke Planning and Investing Solutions to Help Advisors Attract and Serve High-Net-Worth Investors
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Insights
The introduction of High-Net-Worth Services by LPL Financial LLC represents a strategic move to capture a growing segment of the market, as indicated by the $23 trillion increase in investable assets held by high-net-worth households since 2011. This expansion aligns with broader industry trends where wealth management firms are increasingly tailoring their offerings to meet the nuanced needs of affluent clients.
By removing the $5 million investable asset minimum, LPL is broadening its potential client base, allowing for greater market penetration. This democratization of services could lead to increased revenue streams and a more diversified client portfolio, which is beneficial for risk management. However, it is important to monitor the scalability of these personalized services and the potential impact on LPL's operating margins, as high-touch services for affluent clients often require significant resources.
The inclusion of attorneys and CPAs in LPL's High-Net-Worth Services underscores the complex regulatory and tax environment faced by high-net-worth individuals. Estate and philanthropic planning, in particular, involve navigating intricate legal frameworks. The ability to provide expert legal guidance is a competitive advantage, potentially reducing clients' exposure to legal risks and optimizing their tax positions.
However, the integration of such professionals necessitates rigorous compliance oversight to ensure that advice provided aligns with current laws and regulations. This could lead to increased legal and compliance costs for LPL, which must be weighed against the potential for higher client retention and satisfaction rates.
The expansion of services tailored for high-net-worth individuals is indicative of the sector's lucrative potential. The 'virtual ensemble practice' concept LPL is introducing may be a response to the increasing preference for a one-stop-shop experience among wealthy clients. This approach can enhance client engagement and loyalty by providing a comprehensive suite of services that addresses all aspects of wealth management, from tax planning to estate planning.
However, the challenge lies in differentiating these services in a crowded market where many firms are vying for the attention of the same demographic. LPL's ability to deliver on its promise of top-tier support and customized solutions will be critical in maintaining a competitive edge. Tracking client acquisition and retention metrics following the launch will provide valuable data on the effectiveness of these services.
Building on the successful launch of Tax Planning, LPL’s Business Solutions team continues to evolve customized ways for advisors to offer innovative planning solutions for affluent families
SAN DIEGO, Feb. 20, 2024 (GLOBE NEWSWIRE) -- LPL Financial LLC today announced the launch of its expanded High-Net-Worth Services from LPL Business Solutions. This new offering empowers LPL’s more than 22,000 financial advisors in delivering an elevated experience and personalized guidance to high-net-worth clients who require sophisticated approaches to manage, safeguard and deploy their wealth.
Earlier this month, Cerulli reported that investable assets held by high-net-worth households have ballooned by more than
“Our High-Net-Worth Services are delivered by a dedicated team of subject matter experts with deep experience across domains that high-net-worth clients need, helping ensure advisors receive the top-tier support to meet their client’s unique needs,” said Jen Hollers, Senior Vice President, Planning and Advice Services, LPL Financial. “We’re making it easy for our advisors to be even more competitive in their markets and to acquire and retain relationships with high-net-worth and ultra-high-net-worth families. Our advisors now have the option to tap into a group of tenured professionals that include attorneys, CPAs and veteran advanced planners to execute around building, maintaining and servicing these families with complex needs.”
High-Net Worth Services from LPL Business Solutions offers a range of specialized planning services—including the recently announced Tax Planning Service—tailored to address the complex needs of high-net-worth clients. LPL’s new High-Net-Worth Services menu currently includes the following, with expansion on the horizon:
- Case consultations
- Advanced planning
- Estate and philanthropic planning
- Tax planning
- Customized portfolio construction
- Access to a “virtual ensemble practice”
With the launch of the High-Net-Worth Services, LPL Financial has eliminated a previous
About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that LPL should work for advisors and enterprises, and not the other way around. Today, LPL is a leader in the markets we serve, serving more than 22,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 570 registered investment advisor (RIA) firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional.
At LPL, independence means that advisors and enterprise leaders have the freedom they deserve to choose the business model, services, and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships because they know their clients best. Simply put, we take care of our advisors and enterprises, so they can take care of their clients.
Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States.
Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.
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Media Contact:
Kendra Galante
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