BROKER/DEALER SCORECARD YOUR GUIDE TO CHOOSING THE FIRM THAT S RIGHT FOR YOU FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE PUBLIC.

Size: px

Start display at page:

Download "BROKER/DEALER SCORECARD YOUR GUIDE TO CHOOSING THE FIRM THAT S RIGHT FOR YOU FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE PUBLIC."

Brianne Robbins
5 years ago
Views:

1 BROKER/DEALER SCORECARD YOUR GUIDE TO CHOOSING THE FIRM THAT S RIGHT FOR YOU FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE PUBLIC.

2 JOINLPL.COM eciding to affiliate with a different broker/dealer is one of the most pivotal decisions you can make. We ve designed this Broker/Dealer Scorecard to help you determine who s the best partner for your practice. Use it to first identify the support and resources that are most important to you; then compare how potential partners stack up.

3 LPL RANKS #1 IN THE TOP DRIVERS OF CUSTOMER LOYALTY As you weigh your options, you might want to consider this: In a recent Marketing Strategies International Cogent Report 1 survey of affluent investors, LPL Financial ranked highest in the top five drivers of customer loyalty QUALITY OF INVESTMENT ADVICE FINANCIAL STABILITY OF FIRM EASY TO DO BUSINESS WITH RANGE OF PRODUCTS AND SERVICES RETIREMENT PLANNING SERVICES Market Strategies International, Cogent Wealth Reports, Investor Brand Builder : Maximize Purchase Intent Among Investors and Expand Client Relationships, November Market Strategies International surveyed 4,408 investors with $100,000 or more in investable assets between June 21, 2017, and August 8,

4 LPL TECHNOLOGY Rating Financial Is the firm's technology seamlessly integrated across processes and product platforms? LPL s single platform for brokerage and advisory helps streamline your processes. Enjoy instant access to account and client information, broad investment offerings, secure document storage, and detailed practice management resources. Does the firm invest in technology with the goal of providing an exceptional client user experience? LPL invests millions of dollars in technology every year, providing secure online access from any device to portfolios, trade confirmations, reports, and prospectuses. Does the firm's technology automate day-to-day tasks and enable easy, accurate reporting? LPL tracks the effectiveness of its automated systems. Reports are updated in real time and easily accessible. JOINLPL.COM 4

5 TECHNOLOGY continued LPL Rating Financial Does the technology integrate workflows to improve productivity, such as prospecting, account opening, trading, cash movement, and reporting? ClientWorks, LPL s end-to-end advisor workstation, integrates all workflows to save time and improve productivity. Can the firm's technology platform integrate fee- and commissioned-based services, and can it accommodate a change in my practice model at a later date? ClientWorks integrates both fee- and commission-based services. It's also designed to grow with your business, allowing you to adapt your model as you scale. 5

6 LPL RESEARCH Rating Financial Does the firm provide objective research that is not tied to promoting any one product? With a focus on performance, service, and transparency, LPL Research delivers objective information to help you serve your clients. In a recent survey of affluent investors, LPL ranked #1 for quality of investment advice. 1 Does the firm have a robust research team in-house? LPL's in-house research team is composed of more than 60 experts. Do I have regular, direct access to leading research and insights? Advisors get access to daily and weekly commentary via publications, calls, webinars, and updates. JOINLPL.COM 6

7 BRAND REPUTATION LPL Rating Financial Is the firm a leader in the industry? As the largest independent broker/ dealer in the U.S., 2 LPL takes an active role in industry and advisor advocacy as well as product, service, and technology development. Is the firm known for exceeding client expectations? In a recent survey of affluent investors, LPL ranked as the top firm across five key aspects of the client experience. 1 Does the firm have high customer loyalty? In a recent survey of affluent investors, LPL ranked #1 for customer loyalty. 1 1 Market Strategies International, Cogent Wealth Reports: Investor Brand Builder; November As reported by Financial Planning magazine, June , based on total revenue. 7

8 TRANSITION, SCALING & LPL SUCCESSION PLANNING Rating Financial Does the firm offer a dedicated team of specialists to ensure a smooth transition? LPL provides a personal onboarding consultant and any necessary team members to ensure a successful, prompt transition. Does the firm provide custom product mapping? LPL's Business Transition Partners group provides custom product mapping and technology training as part of a comprehensive plan. Does the firm provide recruitment loans to support the transition process? LPL provides financial support to hire staff and pay for upfront business expenses such as rent, equipment, insurance, etc. JOINLPL.COM 8

9 TRANSITION, SCALING & SUCCESSION PLANNING continued LPL Rating Financial Does the firm have a track record of transitioning advisors quickly? Most advisors have successfully completed transition within two months. Can the firm help me establish a business continuity and succession plan? LPL s Strategic Business Solutions team works with advisors to either transition their practice internally or opt for a merger with an outside buyer. Does the firm provide merger and acquisition (M&A) support? LPL s Strategic Business Solutions team works with advisors seeking to buy or sell firms. 9

10 FIRM STABILITY, GROWTH & MARKET LEADERSHIP LPL Rating Financial Does the firm rank among the top in the U.S.? LPL is the largest broker/dealer in the U.S., as reported in Financial Planning magazine, June , based on total revenue. Has the firm experienced solid growth year over year? LPL has experienced a 12% YoY increase in gross profit. Have the firm's brokerage and advisory assets grown year over year? LPL has experienced an 11% YoY increase in brokerage and advisory assets. As of September 30, 2018, advisory and brokerage assets equalled $681B. What is the firm's ownership structure? Who owns the broker/dealer? LPL is a publicly traded company. Its top shareholders are some of the most respected asset managers in the world. JOINLPL.COM 10

11 ADVISOR INDEPENDENCE LPL Rating Financial Does the firm provide several affiliation options? LPL offers multiple business model options such as hybrid, corporate, RIA, and bank/credit union affiliation. Does the firm allow me to choose which clients to work with? LPL advisors have the freedom to choose which clients they want to work with. Do I own my clients? Advisors own all client relationships. Does the firm provide me with complete autonomy to run my business? LPL advisors have full autonomy to run the business their way. Is the firm part of the broker/ dealer protocol? LPL remains part of the broker/dealer protocol. 11

12 ADVISOR COMPENSATION LPL & EXPENSE MANAGEMENT Rating Financial Does the firm offer competitive payouts? Payout percentages range between 90% and 98%, depending on business model. Does the firm offer bonus opportunities at a fair production rate? Bonus programs start at $100K. Does the firm provide a generous bonus percentage? Bonus percentage is up to 8%. Does the firm pay out bonuses immediately? Bonuses are paid immediately. Does the firm offer errors and omissions (E&O) insurance? Due to its size and scale, LPL is able to negotiate highly competitive rates and terms for E&O policies. Will the firm help me manage expenses? LPL provides discounted tools and products that help save money. JOINLPL.COM 12

13 ADVISOR SATISFACTION & SUCCESS LPL Rating Financial Does the firm have a high production retention rate? LPL has a 97% production retention rate. SELF-CLEARING Is the firm self-clearing? All trades and operations are in a single location, which eliminates the middle man and provides significant cost savings. LPL enables advisors to open 99.5% of common account types online and immediately start performing trades. 13

14 LPL MARKETING Rating Financial Does the firm provide support to help me effectively market my practice to attract clients? All advisors have direct access to one-on-one consultations, educational resources, discounted pricing on leading marketing tools and technology, and custom marketing materials. Does the firm have access to leading marketing partners and platforms? LPL partners with leading marketing companies to provide discounted tools and platforms to advisors. Does the firm offer a platform to automate marketing campaigns? LPL's Automated Campaign Tool allows you to create and send digital and print campaigns in just a few clicks. Does the firm provide custom marketing collateral? LPL's Marketing On Demand allows you to order brochures, business cards, and sales collateral customized to your business. JOINLPL.COM 14

15 PRODUCT AVAILABILITY LPL Rating Financial Are the firm s products nonproprietary? LPL products are not proprietary and recommendations are impartial to help you more effectively serve the needs of your clients. Will I have access to the full universe of investment products and services? LPL advisors have access to a spectrum of investment products and services, including exchange-traded funds (ETFs) and alternative investments. Can I construct my own model portfolios? LPL advisors can use objective insights from LPL Research to develop custom models for their clients. 15

16 LPL COMPLIANCE Rating Financial Does the firm have a robust compliance team? LPL employs a 300-person compliance team that provides oversight on many diverse compliance and monitoring requirements. Does the firm provide a full suite of compliance services? LPL provides an advanced platform of integrated risk and compliance management, services, and technology to support your clients and help protect your business. JOINLPL.COM 16

17 LPL TRAINING Rating Financial Does the firm provide a variety of development and training options? LPL advisors can keep up-to-date on financial services trends and practice management skills with live and on-demand training. Does the firm provide staff training? LPL offers training in office management, technology, marketing, and client service skills. CLIENT SERVICES Is the firm s client services team able to effectively support advisors in meeting their needs and their clients needs? LPL s support team is composed of subject matter experts to help you manage critical aspects of your business and address your client needs. Ask LPL anything at any time with easy, reliable access to support by phone or . 17

18 In addition to the questions we ve listed, you probably have other questions you want to ask potential partners. We ve provided spaces below for you to add them. Question 1: Question 2: Question 3: JOINLPL.COM 18

19 Question 4: Question 5: Question 6: Question 7: 19

20 FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE PUBLIC. Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Not FDIC/NCUA Insured Not Bank/Credit Union Guaranteed May Lose Value Not Guaranteed by Any Government Agency Not a Bank/Credit Union Deposit BD (Exp. 3/20)

THE POWER OF AFFILIATION. Supporting Your Financial Advisor Who Serves You

THE POWER OF AFFILIATION. Supporting Your Financial Advisor Who Serves You THE POWER OF AFFILIATION Supporting Your Financial Advisor Who Serves You Effective wealth management is enhanced by the right partner. Just as you benefit from the knowledge and guidance of your financial