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LPL "Playing Hardball" in NPH Rep Enticement

October 4, 2017

LPL Financial is aggressively going after the 3,200 National Planning Holdings reps, and some of them say LPL is "playing hardball," Financial Advisor magazine reports.

One of the main issues cited by reps is the amount of time they have to transition from the four independent broker-dealers on the NPH platform, whose assets LPL acquired from Jackson National in August for $325 million, according to the publication. Reps often get eight to 12 months to make a decision about going with the acquiring firm or taking their business elsewhere, one third-party recruiter tells FA magazine. But reps at National Planning Corp. and Investment Centers Of America apparently must make a decision by the first week of November, with accounts being transitioned to LPL by December 2, according to the publication.

Meanwhile, accounts at SII Investments and Invest Financial are getting moved in February, FA Magazine claims. Many brokerage executives apparently tell the publication that it’s very little time for the reps to make their choice.

LPL will also apparently save $123 million if less than 72% of its reps come over, which is the contingent payment amount LPL had agreed to with Jackson, FA Magazine writes.

But the firm is also trying to entice the reps in more welcoming ways. LPL said it will invest up to $100 million for transition assistance for the NPH reps willing to join, according to the publication.

LPL has also hosted 20 regional meetings and two weekly calls with NPH advisors, set up a dedicated support team and brought on seven relationship managers from NPH to help the reps transition, Andy Kalbaugh, managing director of national sales and consulting at LPL said at a recent LPL conference, according to FA magazine.

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