Being A Fiduciary Is Paying Better
- Created: Wednesday, 21 March 2012 09:31
LPL Financial Retirement Partners is making it more profitable for advisors who are fiduciaries to retirement plans. Payouts are being increased to 95% from 90%. As more advisors choose retirement plan advising as their niche focus, the competition is increasing. Independent advisors like LPL who have the size to facilitate scalability have the prerogative to boost advisor payouts.
As the independent RIA industry matures, it may supplant large financial institutions as the dominant players. Greater flexibility to provide the services they want in the way that they want is becoming increasingly attractive to advisors who wish to place their clients’ interests first. Flexibility is not limited to large RIAs. Technology may make it possible for RIAs of various sizes to scale niche offerings in which they specialize. It’s certainly worth investigating, especially in areas where regulation is becoming tighter. Although this can make service provision more expensive, technology has the potential to offset costs and facilitate niche development.