LPL Highlights Advanced Solutions for Advisors to Thrive Throughout the Lifecycle of Their Business

Rhea-AI Summary

At Focus 2024, LPL Financial unveiled its strategic priorities and expanded portfolio of resources to help financial advisors thrive. The company announced an expanded suite of business solutions, expected to reach 20 services by year-end. Key highlights include:

1. New Payroll and HR Solutions to streamline talent management
2. Tech Consulting Service to optimize technology utilization
3. Chief Investment Officer (CIO) service to elevate expertise
4. Personalized Growth Coaching to drive scale and business development
5. Expanded Marketing Solutions to amplify client connections
6. Access to Capital to support advisors through lifecycle stages

LPL's research shows that top-performing advisors who partner with LPL for support earn three times more revenue while working similar hours to their peers.

Positive

• Expansion of business solutions suite from 3 to 14 services, with plans to reach 20 by year-end
• Top-performing LPL advisors earn three times more revenue while working similar hours to peers
• Introduction of new services including Payroll Solutions, HR Solutions, and Tech Consulting
• Launch of Chief Investment Officer (CIO) service supported by LPL Research team
• Introduction of LPL Growth Program for personalized coaching and business development
• New Digital Marketing Platform to enhance client engagement across multiple channels
• Strengthened commitment to providing capital for growth, liquidity, and succession through LPL Capital Partners

Negative

• None.

Insights

Financial Industry Analyst

LPL Financial's expanded suite of business solutions represents a significant strategic move to enhance its value proposition for financial advisors. The growth from 3 to 14 services, with plans to reach 20 by year-end, demonstrates LPL's commitment to addressing advisors' evolving needs. This expansion could potentially increase advisor retention and attraction, positively impacting LPL's market share.

The Build Your Extraordinary Business study findings are particularly noteworthy. Top-performing advisors partnering with LPL for core functions earn 3x more revenue while working similar hours. This data point could be a powerful marketing tool for LPL to upsell its services and attract new advisors, potentially driving revenue growth for the company.

However, the success of these initiatives will depend on their execution and adoption rates among advisors. Investors should monitor future earnings reports for indicators of increased service uptake and its impact on LPL's financial performance.

Technology Consultant

LPL's introduction of Tech Consulting services addresses a critical pain point in the industry. With only 48% of advisors fully satisfied with their current technology setups, there's a significant market opportunity for LPL to capitalize on. By helping advisors optimize their tech stacks, LPL could potentially increase advisor efficiency and satisfaction, leading to improved retention rates.

The new Digital Marketing Platform is another strategic addition. In today's digital-first world, enhancing advisors' ability to engage clients across various channels could lead to improved client acquisition and retention for advisors, indirectly benefiting LPL's bottom line.

These tech-focused initiatives position LPL as an innovator in the financial services industry. If successful, they could create a competitive advantage, potentially leading to market share gains. However, the effectiveness of these tools in driving tangible business results for advisors will be important for long-term success.

Business Strategy Consultant

LPL's comprehensive approach to supporting advisors throughout their business lifecycle is strategically sound. The introduction of Payroll and HR Solutions addresses a critical need for small business owners, potentially reducing administrative burdens for advisors and allowing them to focus more on client relationships and business growth.

The Chief Investment Officer (CIO) service is a high-value addition, particularly for smaller advisory firms that may not have the resources for a full-time CIO. This service could help LPL attract and retain more sophisticated advisory practices, potentially increasing its average revenue per advisor.

LPL Capital Partners' commitment to providing capital for growth, liquidity and succession is a forward-thinking move. By supporting advisors through various stages of their business, LPL is positioning itself as a long-term partner, which could lead to stronger, more profitable relationships over time.

Overall, these initiatives demonstrate LPL's proactive approach to evolving industry needs, which could strengthen its competitive position in the market.

At Focus 2024, its flagship industry conference, LPL features strategic priorities and expanded portfolio of resources to help advisors nurture highly successful businesses

SAN DIEGO, Aug. 13, 2024 (GLOBE NEWSWIRE) -- At its annual Focus conference, LPL Financial LLC shared its priorities for helping financial advisors and financial institutions advance their businesses by providing personalized support that enables custom client experiences, building flexible operating environments by leveraging innovative technology, and supporting advisors’ growth and legacy planning.

“Being the best firm in our industry at helping clients define and maximize their success throughout their business lifecycle. For all of us at LPL, that’s our very clear vision for the company’s success,” said Rich Steinmeier, chief growth officer, LPL Financial, speaking here today at Focus 2024, one of the industry’s largest in-person gatherings of financial advisors.

In detailing the company’s investments that serve to help LPL clients run thriving businesses, LPL announced today an expanded suite of business solutions, designed to help financial advisors and institutions more effectively manage and grow their wealth management practices. The suite, which has grown from three to 14 services over the past six years, is expected to reach 20 by year-end, and includes services co-designed with advisors to address common challenges.

The Build Your Extraordinary Business study by LPL revealed that top-performing advisors often share the same strategies for exceptional business outcomes. The research highlighted that the most successful 10% of LPL advisors, who typically partner with LPL for support with at least two core functions like marketing or administration, work similar hours to their peers but earn three times more revenue.¹

“We have an incredible opportunity in wealth management not only to deliver sound advice but also to do so in ways that deliver long-lasting positive effects that contribute to local economies, support communities, inspire the next generation and enable thriving businesses that fortify Main Streets far from Wall Street,” said Aneri Jambusaria, managing director of LPL Business and Wealth Solutions, to nearly 9,000 Focus 2024 attendees.

The company outlined the following differentiated ways that LPL is uniquely serving clients to help them excel at their multiple roles.

LPL’s New Payroll and HR Solutions Streamline Talent Management
Human resource and talent issues are often top of mind with business owners, which led LPL to create new services to meet the growing need for foundational HR support and expertise.

LPL’s new Payroll Solutions will cover everything from set-up to full-service processing and includes ongoing access to a dedicated payroll expert. In addition, a new set of HR Solutions helps firms create HR policies, resources and handbooks, and can provide ongoing guidance for talent-related needs.

Tech Consulting Service Aims to Optimize Technology Utilization
A recent study by InvestmentNews revealed that less than half (48%) of advisors feel fully satisfied with their current technology setups, highlighting a significant gap in the effective use of technology within the industry.² Many advisors face a common struggle in integrating and optimizing technology to enhance client interactions and operational efficiency.

Recognizing these challenges, LPL has introduced a comprehensive Tech Consulting service designed to evaluate and improve an advisor’s technology stack. Whether an advisor is looking to evolve technology or optimize existing systems, LPL’s service aims to streamline operations and enhance digital client interactions.

Chief Investment Officer Service Elevates Expertise
LPL’s Chief Investment Officer (CIO) service allows advisors to benefit from a dedicated CIO who partners with them to strengthen their investment strategies, develop custom model portfolios, and even participate in investment committees and client consultations. The OCIO service is supported by the robust LPL Research team, ensuring advisors have access to top-tier market insights and investment expertise. The service has already made an impact on early users, who found the demands of research and portfolio management were limiting client interaction time.

Personalized Growth Coaching Drives Scale and Business Development Wins
The newly launched LPL Growth Program helps advisors fast-track their goals through personalized programs led by industry and LPL professionals. Advisors have access to one-on-one and group sessions tailored to their specific growth objectives and learn practical tactics used by some of their most successful peers. These tools are crafted to assist advisors in defining and executing their business visions, fostering growth and enhancing client engagement.

Expanded Marketing Solutions Amplify Advisors’ Connections with Prospective and Current Clients
LPL’s new Digital Marketing Platform is designed to enhance client engagement through personalized communication across social media, email and digital channels. This tool makes it easy to share LPL Research insights as well as relevant premium content from leading publications, helping advisors keep their clients well informed amid a 24/7 news cycle.

Access to Capital to Support Advisors Through Lifecycle Stages
“Independence doesn’t mean you’re alone; it does mean you get to lead the way,” said Steinmeier today while detailing the company’s commitment to providing capital for growth, liquidity and succession throughout the lifecycle of an advisor’s business. Through LPL Capital Partners, the company is strengthening its commitment to and investments in partnering with advisors to support growth through acquisitions, monetization opportunities and clear succession paths that preserve client relationships while protecting their respected legacy.

For more information about these programs, visit LPL Business Solutions and LPL Liquidity and Capital, and download LPL Business Solutions’ latest report, Build Your Extraordinary Business.

About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for advisors and institutions, and not the other way around. Today, LPL is a leader in the markets we serve, serving more than 23,000 financial advisors, including advisors at approximately 1,000 institutions and at approximately 580 registered investment advisor 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 institution 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 institutions, 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.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

¹ The top 10% of LPL advisors was determined by Gross Dealer Concessions (GDC) taken from commission data in 2022. Individual results may vary. Past performance does not guarantee future results.

² Investment News 2022 Adviser Technology Study

Warning Regarding Forward-Looking Statements
Statements in this press release regarding LPL’s future service offerings, growth and plans, including statements about the planned expansion of LPL’s suite of business support solutions, or any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the historical performance of LPL and LPL’s plans, estimates and expectations as of August 13, 2024. Forward-looking statements are not guarantees that the future plans, intentions or expectations expressed or implied by LPL will be achieved.

Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause actual results to be materially different than those expressed or implied by forward-looking statements. In particular, LPL can provide no assurance that the expansion of LPL’s suite of business solutions will occur in the expected timeframe, or at all. Important factors that could cause or contribute to such differences include: changes in general economic and financial market conditions, including retail investor sentiment; effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to market financial products and services effectively; the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations; the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives; and the other factors set forth in Part I, “Item 1A. Risk Factors” in LPL’s 2023 Annual Report on Form 10-K and any subsequent SEC filing. Except as required by law, LPL specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if its estimates change, and you should not rely on those statements as representing the Company’s views as of any date subsequent to the date of this press release.

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FAQ

What new services did LPL Financial (LPLA) announce at Focus 2024?

LPL Financial announced several new services at Focus 2024, including Payroll and HR Solutions, Tech Consulting Service, Chief Investment Officer (CIO) service, Personalized Growth Coaching, Expanded Marketing Solutions, and Access to Capital for advisors.

How many business solutions does LPL Financial (LPLA) plan to offer by the end of the year?

LPL Financial plans to expand its suite of business solutions to 20 services by the end of the year, up from the current 14 services.

What did LPL Financial's (LPLA) Build Your Extraordinary Business study reveal about top-performing advisors?

The study revealed that the top 10% of LPL advisors, who typically partner with LPL for support with at least two core functions, earn three times more revenue while working similar hours to their peers.

What is the purpose of LPL Financial's (LPLA) new Digital Marketing Platform?

LPL Financial's new Digital Marketing Platform is designed to enhance client engagement through personalized communication across social media, email, and digital channels, helping advisors share insights and keep clients informed.