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Another Key Executive Departs LPL

Another Key Executive Departs LPL

16:56 26 January in In the News

January 23, 2015

Bruce Kelly, Investment News

James Sorey, LPL’s top East Coast recruiter, is leaving for another broker-dealer

LPL Financial’s top recruiter on the East Coast, James Sorey, left the firm earlier this month, continuing a brain drain at the nation’s largest independent broker-dealer.

Mr. Sorey was senior vice president, East region manager, for LPL. He was based in Charlotte and reported to LPL’s head of recruiting, executive vice president Steve Pirigyi.

“We wish James well,” said LPL spokesman Brett Weinberg, who declined to comment further about Mr. Sorey’s potential replacement.

Mr. Sorey is expected to take a position in February at an insurance company owned broker-dealer, Lincoln Financial Network, according to an industry source who asked not to be named. “We have no comment at this time,” said Lincoln Financial Group spokesman Eric Samansky.

LPL Financial had a difficult 2014 as it continued to iron out compliance issues. In October, LPL Financial Holdings Inc., parent of the IBD, said it expected to incur up to $23 million in charges — $18 million more than previously anticipated — to resolve yet-to-be-disclosed regulatory matters such as fines and restitutions.

“It’s tough to recruit into a firm with bad press,” said Jonathan Henschen, an industry recruiter, pointing to LPL’s recent spate of fines and regulatory issues. “That’s tough to overcome. Reps like stability and predictability.”

In response to Mr. Henschen’s comments, Mr. Weinberg said: “LPL is No. 1 for net new adviser growth over the past four years and continues to achieve approximately a 97% production retention rate.”

A 13-year veteran of LPL, Mr. Sorey is part of the old guard at the country’s largest independent broker-dealer that continues to leave. Its chief market strategist, Jeffrey Kleintop, resigned in August to join Charles Schwab Corp. Also leaving over the summer were Scott Welch, co-founder and chief investment officer at Fortigent, a wholly owned subsidiary of LPL Investment Holdings, and John Guthery, senior vice president of research.