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LPL Resurrects Lucrative Package for Certain Recruits

September 28, 2018

LPL Financial has reintroduced a lucrative recruitment bonus apparently aimed at brokers working at LPL’s rivals owned by private equity firms, InvestmentNews writes.

The current package is aimed at advisors and brokers with Kestra Financial, majority-owned by Stone Point Capital; Cetera Financial Group, currently finalizing a sale to Genstar Capital; and Cadaret Grant & Co., being acquired by Atria Wealth Solutions, which is in turn backed by private equity, according to the publication.

The offer is similar to a package LPL offered for a limited time earlier this year, deemed by the industry as particularly attractive, InvestmentNews writes.

In April, LPL offered 50 basis points on assets to advisors from Cetera, Kestra and Securities America joining LPL’s RIA in the form of three-year forgivable loans.

The current offer is aimed specifically at advisors and brokers at private equity-owned firms, two sources who asked to remain anonymous tell InvestmentNews.

LPL recently rolled out a video highlighting the potential benefits as well pitfalls of private equity ownership, according to the publication.

The video appears to be part of a broader strategy for luring advisors developed under Rich Steinmeier, managing director and president of business development, who joined from UBS Global Wealth Management in June, InvestmentNews writes.

LPL declined comment to the publication on the new recruitment offer.

Cetera, meanwhile, revamped its own bonus structure this August following its sale to Genstar, unveiling new initiatives offering advisors equity participation and succession planning.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.