LPL Financial Launches New Business Solution to Provide Advisors Peace of Mind by Protecting Business Value

Rhea-AI Summary

LPL Financial has launched the Assurance Plan, designed to protect the business value of independent financial advisors during unplanned exits due to death or permanent disability. This new solution guarantees a minimum purchase price based on recurring revenue multiple and facilitates commission-free sale of the advisor’s business to another qualified LPL advisor. The Assurance Plan addresses a significant gap in the advisory industry, where many advisors lack succession plans, ensuring their clients and families are protected against financial disruption.

Positive

• Launch of the Assurance Plan enhances business security for advisors.
• Guaranteed minimum purchase price increases advisors' confidence in business value.
• Commission-free sale process for advisors ensures financial benefits for families.

Negative

• None.

CHARLOTTE, N.C., June 11, 2020 (GLOBE NEWSWIRE) -- LPL Financial LLC, a leading retail investment advisory firm and independent broker-dealer, today announced the launch of LPL’s Assurance Plan, a new business solution that protects the value of an advisor’s business in the event of an unplanned exit. The Assurance Plan helps provide advisors with the peace of mind that their business—often their most valuable asset—will be protected and their family and clients are taken care of in the future.

A succession plan is an important part of any advisor’s overall business plan, yet industrywide, the majority of independent advisors do not have one. LPL’s Assurance Plan introduces a new type of solution that serves advisors at any stage of their business lifecycle, protecting their business value as well as their clients and families from being vulnerable to financial disruption.

In the event of an unplanned exit due to an advisor’s death or permanent disability, LPL’s Assurance Plan provides a guaranteed, predetermined minimum purchase price based on a multiple of the advisor’s recurring revenue. LPL will also facilitate the sale of the advisor’s business to another qualified LPL advisor, commission-free, providing any additional proceeds above the guaranteed amount to the advisor or their family.

“Advisors invest so much into serving their clients and building a business they can be proud of. But when it comes to protecting the value of their own greatest investment, there has been a lack of options,” said Jeremy Holly, LPL Financial senior vice president and head of Advisor Financial Solutions, which offers services and solutions to help LPL advisors grow, protect and unlock the value of their businesses. “With this new solution, advisors have a safety net in place, which gives them a layer of assurance as they explore the ideal plan they want in place to transition the care of their clients and monetize their practice when they are ready.”

About LPL Financial
LPL Financial (https://www.lpl.com) is a leader in the retail financial advice market and the nation’s largest independent broker-dealer**. We serve independent financial advisors, professionals and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.

**Based on total revenues, Financial Planning magazine June 1996-2019

Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA / SIPC.

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Media Contact:
Lauren Hoyt-Williams
980-321-1232
Lauren.Hoyt-Williams@lpl.com

FAQ

What is LPL Financial's Assurance Plan?

LPL Financial's Assurance Plan is a new solution that protects the value of an advisor's business in case of an unplanned exit, ensuring financial security for clients and families.

How does the Assurance Plan benefit LPL Financial advisors?

The Assurance Plan guarantees a minimum purchase price based on recurring revenue and facilitates a commission-free sale of the advisor's business.

When was the Assurance Plan launched by LPL Financial?

The Assurance Plan was launched on June 11, 2020.

What happens if an advisor using the Assurance Plan passes away?

If an advisor passes away, the Assurance Plan provides a guaranteed purchase price and helps facilitate the sale of their business to another LPL advisor.