In a extremely uncommon, if not unprecedented, transfer, a $5 billion department workplace of LPL Monetary with 200 advisers beneath its roof is including a direct competitor to LPL, Raymond James Monetary Inc., that its advisers can select to make use of for brokerage companies.
The department operates beneath the title of Good Life Cos. and relies in Studying, Pennsylvania. Conor Delaney, the founder and CEO of Good Life, has been registered as a dealer with LPL since 2012, two years earlier than he opened a registered funding advisory agency, Good Life Advisors.
The service mannequin for monetary advisers has grow to be more and more fluid, with these working as advisers who cost purchasers charges and people who work as brokers and cost commissions overlapping into what the trade calls a “hybrid” adviser. In these instances, it’s frequent for companies like Good Life to have quite a lot of custodians that advisers can use to carry property.
Massive RIAs, for instance, are reshuffling their lineups of custodians. One other department workplaces, Unbiased Monetary Companions, broke with LPL a few years in the past to launch its personal brokerage, IFP Securities.
However the retail brokerage setting isn’t practically as fluid; retail advisers can solely be registered with one broker-dealer at a time, though corporations like Good Life can use different broker-dealers, however provided that all of the events concerned agree, in keeping with trade executives.
There are additionally questions on compliance and supervision of gross sales of economic merchandise for a twin brokerage agency, executives mentioned.
It’s not clear what LPL thinks about this particular change and whether or not it has totally signed off on Good Life including Raymond James as a broker-dealer alternative for the agency’s advisers.
“LPL serves many sorts of practices as they evolve their companies,” mentioned an LPL spokesperson, who declined to remark particularly concerning the change at Good Life.
“We like the thought of being ahead pondering and transferring into issues that haven’t been carried out earlier than,” Delaney mentioned in an interview Thursday morning. “We’re difficult the probabilities of what’s on the market. We’ve been speaking a couple of multi-broker-dealer platform for over a yr, whereas the remainder of the trade is speaking about multi-custodians.”
“We don’t care who we’re working with so long as we’re offering advisers the perfect expertise attainable,” he mentioned.
Good Life has had success in recruiting brokers and advisers from Waddell & Reed, the place Delaney was registered earlier than transferring to LPL in 2012, with 80 advisers from Waddell & Reed transferring to Good Life and utilizing LPL as a broker-dealer. LPL recently acquired the retail brokerage’s advisers and property.
40 Below 40 Highlight: Tan Phan
For reprint and licensing requests for this text, click here