Independent Advisor Services, LPL Bill Dwyer President
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Registered Rep.: Why would a wirehouse rep want to leave his firm and join yours?
Bill Dwyer: To create an offering valued by their clients, a very high-quality work environment for their staff and themselves, and the opportunity to build wealth through equity in their businesses.
RR: Other than your own, of course, which other independent broker/dealers are you impressed with and why?
BD: Two features are a must: self-clearing and scale. The former is a must for great service and platform evolvement, and the latter provides the resources to deliver.
RR: Least favorite compliance rule?
BD: The regulators are working aggressively to make disclosure reasonable and effective for the consumer, but there is still a long way to go.
RR: Are your affiliated advisors fee-based or mostly commission/transaction advisors?
BD: Approximately $63 billion of the over $232 billion in assets under management are advisory assets.
RR: How many of your reps are dually registered? Is that number growing or not?
BD: 100 percent of our advisors are securities licensed, and over 90 percent are licensed investment-advisory representatives through LPL.
RR: The most expensive aspect of running your independent broker/dealer firm in 2007?
BD: Investment in technology — an essential expense for great service, product offerings and managing growth profitably. Our scale is critical for success, and makes us an industry leader.
RR: Your recruiting goals through 2008 and beyond?
BD: Grow the firm with quality advisors at 10 to 15 percent a year.
RR: What are you thoughts on upfront bonuses?
BD: Declined to answer.
RR: The ideal advisor is? (Three words or less.)
BD: A caring, entrepreneurial leader.
RR: Biggest challenge in 2008 for the independent channel and your firm?
BD: Scale. LPL is fortunate to have the scale and critical mass to be able to create programs and services that allow our advisors to run efficient, profitable practices.
RR: The best technology investment your firm has made?
BD: Going self-clearing. LPL's self-clearing environment combined with our service center offer advisors the highest level of cost-effective service.
RR: Best advice you can give a wirehouse rep who is thinking about going independent?
BD: LPL advisors always say the same thing: They wish they had done it sooner. So don't wait: Become independent and start building your dream.
RR: What challenges will you face over the next five years?
BD: Helping high-quality advisors provide much needed advice to the massive wave of baby boomers entering retirement.
RR: If you could meet one business-related figure, dead or alive, who would it be and what would you ask?
BD: Declined to answer.
RR: In 10 years, your firm will be?
BD: A leading provider of support services to professional advisors — much like we are today.
RR: A book every financial advisor should read?
BD: Declined to answer.
LPL Financial Services
9785 Towne Centre Drive
San Diego, CA 92121
(800) 877-7210
www.lpl.com
Number of Back-Office Employees: 2,389
Number of advisors: 10,635
Total Client Assets Under Management*: $231.8 billion
Advisors' Average Length of Service (in industry): 17 years
Total Revenue Year to Date: $2.2 billion
Revenue from Commissions: $1.2 billion
Revenue from Fees: $609.8 million
Average AUM per Rep: $28.2 million
Average Payout per Rep (percent): 87%
Average Production per Rep: $288,900
Number of Dually Registered Reps: 90 percent, through LPL corporate RIA
*Does not include their affiliated b/d.
