Lpl Independent Contractor Agreement

With more than 200 financial professionals and thousands of accounts receivable, IFP is now about to reprint these accounts and transfer assets to Pershing, the clearing company and deposit bank chosen by IFP, a welcome last step to become truly independent. Independent Financial Partners (IFP) is a registered investment consultant, broker-trader and insurance agency that provides technology, compliance, marketing, business development and operational support to its network of more than 200 financial experts. Founded in 2000 by William E. Hamm Jr., IFP worked for 19 years as a Hybrid RIA and OSJ before launching its own broker-dealer in 2019. The IFP offers a platform for truly independent financial professionals, based on selection, transparency and professional financial feedback. LPL is by far the largest independent broker, and as such, its practices offer a window on the business. LPL is by far the largest independent broker, and as such, its practices offer a window on the business. The company does a lot of things right: it has been a success with clients and consultants, and its stock has been a winner that has gained an average of 20% over the past five years and has surpassed the S-P 500 index by 9.5 percentage points. Its advisory and brokerage assets reached $719 billion in the third quarter of 2019, up from $509 billion at the end of 2016. Since 2016, it has welcomed 2,000 councillors into its ranks and reached 16,349, almost all of whom are independent contractors. He concludes: “The IFP has been around since 2000, but I feel like this is just the beginning.” LPL generates almost equal parts of commission and advisory revenues and earns a total of approximately $2.8 billion in the first nine months of 2019. LPL also generated $380 million in “other” heritage-based revenues, including “sponsorship programs with financial product manufacturers.” Such sponsorship programs are similar to those of Wirehouses, where fund companies pay for investment conferences, marketing and consulting training.

Speaking of recruitment, more than 30 new financial professionals will enter the company in the coming months. Bill Hamm is looking forward to this next chapter. Every day of the week, we highlight market news and explain what will probably be important tomorrow. LPL says it extends credit to consultants in the form of “loan recruitment, commission advances and other credits,” with conditions based in part on the consultant`s “ability to generate future commissions.” According to the 2018 Management Report, LPL provided $233 million in forgivable loans to consultants, up from $160 million at the end of 2017. The information provided by LPL documents a large number of sales practices that constitute conflicts of interest. For example, for alternative investments such as REITs, Hedge funds and Private Equity, LPL receives a “marketing grant” from the investment sponsor of up to 1.5% on the sale of invested assets and 0.35% on the trailing basis (as long as the client owns the fund). These are conflicts of interest, as shown by the information provided by LPL, as they encourage the company and its consultants to sell these products through other products with lower costs. These practices are not uncommon. Most brokers no longer offer money for cash sweep accounts.

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