LPL's news

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indytwo's picture
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Joined: 2005-06-02

For all of you LPL reps what do you think about todays news?  Just want to get others opinions!

Greenbacks's picture
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Joined: 2004-12-21

 Undecided! I will have to wait and see like everyone else. I talked to some of the home office people and they seem excited!  Maybe just to keep there jobs.
I know if they would have sold to an Insurance company or stepped down to a wire house level I would have left!
I might have pulled out if they did an IPO then they would have had to answer to share holders. IMO we would have looked like A.G.Edwards  and I would have left! 

BrokerRecruit's picture
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Joined: 2005-04-19

I must have missed the news-what happened at LPL?

Indyone's picture
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Joined: 2005-05-31

LPL has reached an agreement in which investment affiliates of Hellman & Friedman LLC and Texas Pacific Group (TPG), two leading private equity firms, will become majority investors in LPL Financial Services.

BrokerRecruit's picture
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Joined: 2005-04-19

I see.  Thanks.

Starka's picture
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Joined: 2004-11-30

We'll see how it goes.  They're promising "no changes", and the firm has never lied to me.  If they make drastic changes, it's no big deal.  Just move on.

Guest1's picture
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Joined: 2005-01-16

It;s not your grandmas LPL anymore.. But I guess "you can always move on. No big deal" I am sure Hellam and Co are in this for the long haul. Yeah Right.

unsunghero's picture
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Joined: 2005-07-12

Ted Jones led his firm with a vision
And Bachman carried on with the mission
Then 3mil took over
Told Guest1, "Bend over!"
I'm gonna give you this years distribution.

Help's picture
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Joined: 2005-07-30

 
I wouldn't doubt in two years after Hellman is done, you will have less indys but more production.  Then, they will be sold to a Merrill or big three just like Advest.

Guest1's picture
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Joined: 2005-01-16

LPL is gone as you know it. Not right away, but gone nevertheless.

Indyone's picture
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Joined: 2005-05-31

Lots of big predictions...help & guest...probably just wishful thinking, but you're entitled to your guesses like anyone else.  About the only thing I feel fairly certain about is that eventually, LPL will find a way to make their indys more profitable for the shareholders.  The only question in my mind is how?

csmelnix's picture
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Joined: 2005-06-01

Was just listening in on another call with Mark Cassidy; in terms of TPG or Hellman being able to flip us or sell their ownership rights is not a very viable option.  LPL Board members (Mark and Jim) have super majority shareholder rights which allows them to block any attempt to sell ownership.  That certainly helps to know that.  Now I can just get back to doing my business.

troll's picture
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Joined: 2004-11-29

Greenbacks wrote:
 Undecided! I will have to wait and see like everyone else. I talked to some of the home office people and they seem excited!  Maybe just to keep there jobs.
I know if they would have sold to an Insurance company or stepped down to a wire house level I would have left!
I might have pulled out if they did an IPO then they would have had to answer to share holders. IMO we would have looked like A.G.Edwards  and I would have left! 

I think the bigger news is that Todd Robinson has become Chairman Emeritus, effectively retired, rather than coming back from his one-year sabbatical as originally planned.
I think it is likely this will ultimately lead to an IPO as a liquidity strategy for Texas Pacific and the others.
That being said, even if they end up having to answer to stockholders on an ongoing basis, I think they realize that they must continue to serve the advisors well, since none of us have handcuffs and we OWN our client base....unlike at a wire.

noggin's picture
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Joined: 2004-11-30

CSmelnix & Indyone- After having my share of working at a public traded company, I got to tell you changes are coming...... That's the downside of a firm that is publicly traded, they answer to shareholders at the end of the day. Good luck to you.

compliancejerk's picture
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Joined: 2004-12-03

noggin wrote:CSmelnix & Indyone- After having my share of working at a public traded company, I got to tell you changes are coming...... That's the downside of a firm that is publicly traded, they answer to shareholders at the end of the day. Good luck to you.
As a result there is much more disclosure as to what is going on behind boardroom door.  If a CEO screws up and is culpable then the CEO is held fully accountable.  Noggin, having worked for your employer and publicly traded firms.... I prefer the later because of the ethics.

Indyone's picture
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Joined: 2005-05-31

noggin wrote:CSmelnix & Indyone- After having my share of working at a public traded company, I got to tell you changes are coming...... That's the downside of a firm that is publicly traded, they answer to shareholders at the end of the day. Good luck to you.
Of course this assumes that GPs are less greedy than your run-of-the-mill shareholder...think I'll take my chances where I'm at...

Help's picture
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Joined: 2005-07-30

Joedabrkr,
Whether you are independent or work for one of the big boys, we all in some way own our clients.  You can move from a big brokerage and still take your clients.  The first thing you sell when you meet a prospective client is YOURSELF.
Also, I do know of LPL financial consultants under contracts and if they leave, they are screwed and will owe big money to their partners.  I don't think there is any such thing as being completely free.  Try switching from any platform (LPL to independent RJ or any other company) and see if some clients might take the opportunity to look at other companies.  You will keep most of the clients, but some may leave.
Thanks, Help

troll's picture
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Joined: 2004-11-29

Help wrote:
Joedabrkr,
Whether you are independent or work for one of the big boys, we all in some way own our clients.  You can move from a big brokerage and still take your clients.  The first thing you sell when you meet a prospective client is YOURSELF.
Also, I do know of LPL financial consultants under contracts and if they leave, they are screwed and will owe big money to their partners.  I don't think there is any such thing as being completely free.  Try switching from any platform (LPL to independent RJ or any other company) and see if some clients might take the opportunity to look at other companies.  You will keep most of the clients, but some may leave.
Thanks, Help

 
Ok let me re-phrase...if you own your own LPL branch as a ser 24 principal, you own your client base.  Some individual "non principal" advisors may be under contract to their branch managers or partner, perhaps.....that's a local business issue that comes up on a branch by branch basis....

csmelnix's picture
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Joined: 2005-06-01

Noggin,
You're right changes are coming...the changes are more influx of cash to make our systems even more advanced and efficient than they already are.  Changes that'll make my business much more efficient as well.  The ability to bring on higher level resumes to our support structure that will translate to better service and information for my clients.  I can't wait for these changes to come; just when I thought we were already great at it, the opportunity to get even better is exciting. 
It certainly beats having to call my service center 5 times and get 5 different answers like I use to get at your firm.  It certainly is better knowing that there will be a large reinvestment into adding better people instead of more people, to say, review every VA application I want to place.  The one thing you just don't get is our model is so much more robust than yours which is what joedabrkr was getting at - LPL can't afford to change how they service their clients (key word is their clients, meaning their advisors - you ever hear jones call you that?)....LPL can't because advisors will leave in mass and since LPL isn't about growth by adding bodies like um...Jones, the success they have is dependent upon continuing that path. 
 
 

troll's picture
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Joined: 2004-11-29

csmelnix wrote:
Noggin,
You're right changes are coming...the changes are more influx of cash to make our systems even more advanced and efficient than they already are.  Changes that'll make my business much more efficient as well.  The ability to bring on higher level resumes to our support structure that will translate to better service and information for my clients.  I can't wait for these changes to come; just when I thought we were already great at it, the opportunity to get even better is exciting. 
It certainly beats having to call my service center 5 times and get 5 different answers like I use to get at your firm.  It certainly is better knowing that there will be a large reinvestment into adding better people instead of more people, to say, review every VA application I want to place.  The one thing you just don't get is our model is so much more robust than yours which is what joedabrkr was getting at - LPL can't afford to change how they service their clients (key word is their clients, meaning their advisors - you ever hear jones call you that?)....LPL can't because advisors will leave in mass and since LPL isn't about growth by adding bodies like um...Jones, the success they have is dependent upon continuing that path. 
 
 

Well said!!

noggin's picture
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Joined: 2004-11-30

Csmelnix and Joedabroker- I hope you are right for your sake. I have seen some strange decisions made in the land of publically traded companies and hope yours won't be one of them.

eddjones654's picture
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Joined: 2004-12-03

noggin,
Are you impying that privately held brokerage firms have made better decisions? (a.k.a. satellite technology, no email, preferred mutual fund families, etc. etc.)
Weren't you looking to leave the bestsalesforce team awhile back?

csmelnix's picture
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Joined: 2005-06-01

Noggin,
Don't profess to be an expert when you are under the cult like line my pocket GP arrangement at Jones.  If you don't have knowledge of what's happening and why this was done and how it's been in plans for years - you just really shouldn't speculate. 
Ah, I take that back, I don't mean to be so harsh but to compare your company to ours is like comparing oil and water.

noggin's picture
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Joined: 2004-11-30

Csmelnix- I never professed to be an expert, all I did was wish you well. Now all you do in response is slam me for my good wishes. I hope that you conduct your business with more class than you have shown me. Once again, good luck to you. I am sure you will insult me for this comment.

noggin's picture
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Joined: 2004-11-30

Eddjones- I looked at an offer, decided not to accept it.

troll's picture
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Joined: 2004-11-29

csmelnix wrote:
Noggin,
Don't profess to be an expert when you are under the cult like line my pocket GP arrangement at Jones.  If you don't have knowledge of what's happening and why this was done and how it's been in plans for years - you just really shouldn't speculate. 
Ah, I take that back, I don't mean to be so harsh but to compare your company to ours is like comparing oil and water.

No...comparing the two is more like comparing bear piss and Dom Perignon.....

csmelnix's picture
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Joined: 2005-06-01

Your right noggin, I do apologize.

noggin's picture
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csmelnix- No problem. Have a great weekend!

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