LPL recruiting loans surge again in 2020
LPL Financial continues to spend heavily on recruiting financial advisors and registered representatives, and this week reported late 2020 recruit forgivable loans of $ 419.2 million, a 24% increase from a year earlier.
LPL made the disclosure in its annual report, which it released on Tuesday. The largest independent broker-dealer with over 17,000, LPL has been a central recruiting hub for decades, but in recent years it has spent heavily but selectively to attract advisors and their client assets to its RIA platform. and conservation.
LPL had a net addition of 823 representatives and advisers in 2020, and ended the year with 17,287. Repayable loans are one of the most common means used by brokers to attract recruits.
Earlier this week, InvestmentNews reported that The LPL deployed its financial power in the context of its competition with Cetera Financial Group to recruit certain advisers to Voya Financial Advisors. Cetera said this month he bought the rights to Voya’s wealth management business and advisers are often inundated with headhunter throws during such acquisitions.
Some Voya advisers may receive recruitment offers, in the form of nine-year forgivable loans, from LPL that more than double Cetera’s supply.
Previous years have seen a steady increase in forgivable loans to advisors recruited from LPL. At the end of 2019, forgivable loans to LPL advisers stood at $ 338 million and at the end of 2018 at $ 233.3 million, according to annual reports for those years. A year earlier, loans stood at $ 159.9 million.
The forgiveness loan balance at the end of last year at LPL is the difference between the total “advisor loan” amount of $ 547.4 million in the annual report and the “repayable” amount of 128. $ 2 million. In previous years, the LPL published the “repayable” advisor loan balances as a single figure.
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