BOSTON, Jan. 25 /PRNewswire/ -- LPL Financial Corporation ("LPL Financial"), the nation's largest independent broker-dealer, announced that Derek Bruton, executive vice president and National Sales Manager, has assumed oversight of the company's Hybrid RIA platform. This step expands Mr. Bruton's role as National Sales Manager, Independent Advisor Services, to encompass all business consulting and business development for independent advisors, as well as financial planning and RIA services. The company expects that Mr. Bruton, who brings 17 years of experience in the RIA custody space, will build on the robust expansion of the company's Hybrid RIA offering in 2009.
First launched in late October 2008, the Hybrid RIA platform's assets under management (AUM) had reached $7.3 billion as of year-end 2009, compared against AUM of approximately $1.3 billion disclosed in the beginning of last year. The company reported that this AUM growth was driven principally by the successful recruitment of wirehouse and large independent advisors with substantial fee and commission based business. Reflecting this, at year-end 2009, there were 92 RIA firms on the company's Hybrid RIA platform, representing an average of $80 million in AUM per firm.
Bill Dwyer, President, National Sales and Marketing, said, "A longstanding leader in offering a conflict-free, open architecture service and product platform, LPL Financial has combined this with freedom in the choice of business model through which financial advisors can serve their clients. We intend to further accelerate the profitable expansion of our Hybrid RIA platform under Derek Bruton, who brings a wealth of experience in operating and growing existing RIA custody platforms across the industry."
The company also reported that Trevor Norton has been named senior vice president, RIA Services and Financial Planning, with responsibility for day-to-day management and operations of the Hybrid RIA platform and financial planning offerings. Mr. Norton, who will report to Derek Bruton, brings 12 years of experience in the RIA custody industry, most recently serving as the company's senior vice president, RIA Program Management and Financial Planning.
Derek Bruton, executive vice president and National Sales Manager for LPL Financial, said, "I am excited to assume oversight of our Hybrid RIA offering, which has grown in tandem with the industry's increasing recognition of its truly unique value proposition. As both an independent broker-dealer and RIA custodian with self-clearing, LPL Financial was the very first player in its particular space to centralize every aspect of an advisor's fee and commission-based businesses on a single, integrated technology platform. Advisors are increasingly attracted by the ability they have with LPL Financial to service the widest possible range of client needs by easily migrating across the entire business model spectrum of the financial advice industry. I am convinced that this total flexibility and integration within a single organization represents the future of our industry."
Through its broker-dealer structure, corporate RIA and Hybrid RIA platform, financial advisors with LPL Financial can decide among all available business structures that exist today, including whether they wish to have their own RIA, and whether they want to offer commission-based business in tandem with fee-based activities on one consolidated platform.
About LPL Financial
LPL Financial is one of the nation's leading financial services companies and largest independent broker-dealer (based on total revenues as reported in Financial Planning magazine, June 1996-2009). Headquartered in Boston, Charlotte, and San Diego, LPL Financial and its affiliates offer industry-leading technology, training, service, and unbiased research to 12,027 financial advisors, 776 financial institutions, and over 4,000 institutional clearing and technology subscribers. LPL Financial had $269 billion in assets under management as of September 30, 2009.
LPL Financial and its approximately 2,400 employees serve financial advisors through Independent Advisor Services, supporting financial advisors at all career stages; Institution Services, focusing on the needs of advisors and program managers in banks and credit unions; and Custom Clearing Services, working with broker-dealers at leading financial services companies.
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SOURCE LPL Financial