Larry Roth posted his weekly “Larry’s Take” commentary on the deals and recruiting in the wealth industry on Wealth Solutions Report as part of its Deals & Recruiting Roundup.
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More than just leaves are falling this autumn. LPL announced pricing drops to several of its services in a move the firm said follows the industry’s shift to advisory assets versus brokerage assets. While many still think of LPL as a broker-dealer, it clearly wants to signal that it is attentive to the advisory space.
Fee cuts have immediate implications for retaining Commonwealth advisors, of course: More competitive fees will sweeten the deal for Commonwealth advisors who stay. Beyond that, the structure of the changes will be especially beneficial for retaining and recruiting advisors with lower asset numbers.
LPL appears to be willing to leap ahead of the gradual compression of fees in wealth management, confident that they will retain profitability and openly inviting fee competition. It’s a bold move, but so was paying $2.7 billion in cash for Commonwealth. Rich Steinmeyer has his foot on the accelerator.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact Larry Roth at larry.roth@ascentix.com.
To see the Wealth Solutions Report Deals & Recruiting Roundup for the week, click here. Visit Wealth Solutions Report for the latest wealth management insights, analysis and news.