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LPL Expands Succession Planning Program to Advisors Outside the Firm

By Jeff Berman

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LPL Financial’s Liquidity & Succession program is now available to advisors not affiliated with LPL, the firm said Wednesday.

The program was launched internally in May 2022 as a test, a company spokeswoman said on Thursday.

“We are really excited by the results and are confident this program will be a positive addition to the industry,” Jared Fingeret, senior vice president of Liquidity & Succession, Strategic Programs at LPL, said in a statement.

“Advisors who are nearing retirement are paired with other, philosophically aligned, independent advisors to help provide clients with a similar experience and seamless transition,” he explained. “With so many seasoned advisors expected to retire within the next 10 years, LPL Liquidity & Succession not only helps ensure the continuation of independence — it creates opportunities to position the next generation of independent-minded advisors for success.”

The LPL spokeswoman told ThinkAdvisor on Thursday that “most of our products target advisors who are already here but this one is likely to be a driver to bring additional advisors to LPL.”

The new program, she explained, is “very different from” LPL’s Assurance Plan, which she noted is ”for an unplanned exit from the industry” due to death or incapacitation.

LPL launched Assurance Plan in 2020, as the advice industry struggled to get more advisors to embrace succession planning.

About 70% of indie advisors in the U.S. lacked a succession plan at that time, according to LPL.

Liquidity & Succession is intended for advisors looking to monetize the businesses they built, either to retire or to just free themselves of their business-owner duties to refocus on their clients and grow their businesses, LPL explained.

Via a “market-competitive M&A transaction,” LPL Liquidity & Succession provides advisors who are out to sell their practice the ability to maintain their brand, investment philosophy and client service model while benefiting from LPL’s strategic and operational support, it said.

The focus is on advisors who plan to retire within three to seven years, but the program is open to advisors at any stage of their careers, the firm said.

LPL now serves almost 22,000 financial advisors, including advisors at approximately 1,100 enterprises and at about 550 U.S. registered investment advisor firms, it said.

Jeff Berman

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