The Essentials policy support plan is a lower-priced alternative to the company’s existing Premium product.
LPL Financial announced Wednesday the launch of LPL Business Solutions’ CFO Essentials product.
LPL said on Wednesday that the new product “provides CFO expertise to emerging companies and growth advisors seeking executive-level strategic advice.” It notes that CFO Essentials “offers personalized financial benchmarking, budgeting and forecasting strategies delivered by experienced financial professionals.”
LPL CEO and President Dan Arnold mentioned CFO Essentials during an earnings call with analysts in July, but did not disclose many details at the time. Arnold noted that this is an example of one of the new streamlined versions of the firm’s existing solutions, designed to “help advisors whose client needs may be less complex than others.”
LPL’s flagship CFO Premium solution is “designed for complex, multi-layered practices,” the company noted. CFO Essentials, on the other hand, is a “lower-priced, easier-to-operate package that provides advisors with a dedicated CFO, essential support and an actionable roadmap for optimization, growth and efficiency,” LPL said.
The company did not mention the price difference between the two products in its press release, and LPL did not immediately respond to a request for comment.
LPL said that so far, advisors using the CFO Premium solution have seen promising results, including increasing average annual business valuations by more than 30% in some cases.
Initial reaction was positive
In a press release from LPL, Stephen Iaconis, owner and consultant at Financial Advice & Consulting, said his Birmingham, Alabama-based firm participated in a pilot deployment of CFO Essentials in January.
Iaconis’ advisory firm includes a certified financial planner, director of operations and client services, and LPL Management Solutions.
According to LPL, Iaconis said: “Adding the CFO’s expertise to the team will help provide focus and clarity in areas such as customer segmentation, business benchmarking and defining employee roles, while ensuring competitive remuneration. Supporting the company’s current stage of development.”
LPL said that with the involvement of an outsourced financial controller, Iaconis and his team now “expect to hire several consultants in the coming months”, as well as a support consultant and an additional customer service assistant.
The launch of CFO Essentials follows the release of the Build Your Extraordinary Business study developed by LPL Business Solutions, which examined the common strategies used by top-performing consultants to achieve results.
Recent research shows that the top 10% of LPL consultants have commonalities in the way they pursue success. LPL said data shows that, on average, firms that outsource two or more core business functions, such as CFOs, CMOs or administrative services, work similar hours to lower-output consultants but “generate revenue that is three times”.
“We continue to expand our outsourcing services to meet the growing need from advisors to free up time and leverage outside thinking and insights,” Lancer noted. “Advisors have access to professionals in marketing, administrative support and financial planning, without adding additional staff.”
LPL currently serves approximately 22,000 financial advisors, including advisors to approximately 1,100 businesses and approximately 550 U.S. registered investment advisory firms.
