LPL Financial names a strategy czar
The big IBD puts Dan Arnold into the newly created position
4 min read- LPL Financial created strategy head role, promoting Dan Arnold to oversee long-term planning.
- Arnold's promotion signals LPL's shift towards fee-based revenue and open architecture.
- Custodian-like offerings and broader channel expansion are key strategic priorities for LPL.
Dan Arnold has been promoted to a newly created position and expanded leadership role as head of strategy for LPL Financial effective Nov. 14. He is currently managing director and president of Institution Services, the LPL Financial business unit that provides third-party investment and insurance services to more than 750 banks and credit unions nationwide.
LPL has been undergoing a strategic transformation from a primarily privately owned broker-dealer that makes its money from transactional revenues to one based on fee-based revenues and greater open architecture of its product platform. See: LPL has a new high-margin, high accolade advisory platform but SAM’s sticking around. This includes the rapid development of an RIA custody platform that now has $20 billion of assets in custody. LPL Financial directly services 12,600 financial advisors and approximately 750 financial institutions.
“LPL will look more like a custodian over time in offerings and they will even further broaden their channels (e.g., moves into banks, retirement, etc.),” says Charles “Chip” Roame, managing principal of Tiburon Strategic Advisors
Indeed, the Boston and San Diego-based company has taken a strategic turn toward offering more third-party services – including a greater emphasis on clearing for other firms. See: LPL Financial confirms that Akellian hire means big plans for its clearing services. LPL Financial supports over 4,000 financial advisors that are licensed with insurance companies with customized clearing, advisory platforms and technology solutions.
Robert Moore walks from LPL Financial president role for new gig, but Dan Arnold softens the blow by filling the void
Leveraging experience
Roame says that that Arnold is likely perceived as a rising star at LPL after building UVEST Financial Services and then helping sell it to LPL. “It’s a great bank business,” he says. “Now it seems they are tasking him with the strategy role.”
Arnold joined LPL in 2007 following the acquisition of UVEST Financial Services by LPL Financial.
Story Timeline
Prior to LPL Financial, Arnold worked at UVEST for 13 years, serving most recently as president and chief operating officer. He led the company through a period of unprecedented success, during which it quickly developed into one of the fastest growing broker-dealers that serve banks. Earlier in his career, Arnold spent seven years with BellSouth and MCI. With these organizations, he held leadership roles in corporate finance and sales and marketing.
Arnold is a graduate of Auburn University and holds an MBA in finance from Georgia State University. He successfully completed the Certified Public Accountant examination.
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“Dan has demonstrated the strength of his business leadership and strategic insight in the course of his nearly 20 years in our industry, which include both the time he has spent developing and implementing growth strategies for an important line of business at LPL Financial, and his prior experience as president and CEO of a broker-dealer,” said Esther Stearns, president and chief operating officer of LPL Financial, in a release.
“Dan will have the opportunity to leverage his experience for the benefit of the entire organization, as he works with our executive management on developing LPL Financial’s long-term strategic plans, and to assess the important trends that are shaping our industry.”
Extensive search
Prior to his departure from LPL earlier this year, Steve Langlois was responsible for some of the strategic thinking for LPL. Since September, Langlois has been the chief administrative officer at National Financial Services, the Fidelity Investments-owned clearing firm. He had been with LPL since 2004. Until 2001, he worked with LPL chief executive Mark Casady at Zurich Scudder investments.
Effective Nov. 14, LPL also promoted Andy Kalbaugh to lead its Institution Services unit. He is currently executive vice president of business consulting for LPL Financial’s Independent Advisor Services business.
“After an extensive search, Andy was chosen to take on this critical role because of his proven capabilities and strengths in leading and growing businesses,” said Bill Dwyer, president of national sales and marketing for LPL Financial in a release. “Andy’s career in the investment industry broadly spans retail, operations, trading, sales management, and executive leadership – including 10 years as a chief executive officer. In his most recent role at LPL Financial’s Independent Advisor Services division, Andy led a 40-person Business Consulting team as they consistently enhanced the level of relationship and practice management support provided to our top independent advisors.”
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