LPL Throws Its Advisors' Weight Behind The Financial Services Institute

Tuesday, August 09, 2011 07:01
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LPL Throws Its Advisors' Weight Behind The Financial Services Institute

The independent broker-dealer group that has come out in favor of registered investment advisors moving to FINRA supervision just got a very powerful friend in the industry.

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LPL has signed up all of its 12,600 broker affiliates to a free year of membership in the Financial Services Institute.

 

FSI is presumably already aligned with LPL's goals -- it's run by Bill Dwyer, who just happens to be LPL's head of marketing -- so this largely just beefs up the group's membership.

 

LPL reps get access to FSI communications and analysis of breaking regulatory topics. 

 

The move represents a fairly significant expenditure on LPL's part. Next year, its reps who choose to remain members will have to pay a discounted $99 a year to stay in the group, so we are looking at over $1.2 million in membership fees here.

 

Dwyer says the group is the only one focused on "the industry-wide advocacy needs of independent financial advisors" and that the stronger relationship is designed to "protect" advisors' ability to stay in business, regardless of compensation model.

 

Comments (5)

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hfinancial
So how does Mr Dwyer think in ANY WAY that FINRA regulating RIA's is advocating the needs of INDEPENDENT FINANCIAL ADVISORS? Seems to be a bit off base in his assessment probably because he doesnt have to deal with FINRA as an advisor/rep
hfinancial , August 09, 2011
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ScottMartin
You got me. I'll ask and let's see if he'll answer the question.
ScottMartin , August 09, 2011
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brentb843
LPL is a Broker-Dealer, all broker dealers want to be "under' FINRA because they OWN FINRA. They can make rules on RIAs to severly limit ability not to use broker-dealer products, etc. And increase costs.

None of these people have yet to be able to communicate how RIAs who are not owners of FINRA would be a party to the SELF in SRO.

brentb843 , August 09, 2011
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brentb843
Scott - why don't you start asking these folks how can FINRA be Self Regulating RIAs?
brentb843 , August 09, 2011
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ScottMartin
Brent! That's definitely on the list. I think he's so deep in the IBD mindset that he thinks "independent financial advisor" = "registered rep at an IBD."
ScottMartin , August 09, 2011

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