LPL brings in ex-wirehouse HNW-business builder

Thomas Coyle

20 February 2008

Chris Poch tagged to help independent brokers support up-market initiatives. Independent broker-dealer LPL Financial has hired Christopher Poch, one of the chief architects of Smith Barney 's wealth-management platform, as head of wealth-management services and CEO of its trust affiliate. The appointment is part of LPL's campaign to capture high-end "breakaway" wirehouse brokers.

Poch reports to Bill Dwyer, president of LPL's Independent Advisor Services.

"LPL Financial is committed to delivering the highest levels of service and support to its advisors, and the high-net-worth sector has become an important aspect of many of our advisors' businesses," says Dwyer. "We have high hopes for the future under Chris' direction."

Poch comes to LPL after almost 25 years with Smith Barney and its parent company Citigroup; first as an advisor and most recently as head of Smith Barney's Private Wealth Management team.

Gentrification

The "PWM" designation pops up a lot at big-name firms, usually as a catch-all for private-client services. But at Smith Barney it's more resource than rubric, with PWM helping advisors coordinate and deliver services from various business units.

Poch's tenure with Smith Barney PWM coincided with a move at the wirehouse -- mirrored, more or less, by the other big brokerages -- to phase out the cold-call, stock-tip mindset in favor of more holistic and goals-based approaches to client service, backed by in-house training and multi-discipline support and encouragement for on-going accreditation.

Another aspect of this broker gentrification is the move toward specialization and the development of brokerage teams. A team-based advisor can generate as much as 36% more in revenue and bring in 42% more in assets under management than a lone advisor, according to industry data.

Poch now works to bolster similar assistance for LPL-affiliated brokers, by providing training, research, networking support and other resources.

Specific capabilities and service offerings aside, "wealth management" comes down to "a kind of relationship and a way to approach the clients," says Poch. "It's just the most effective way to engage the client using a life-goals approach."

With strong backing, LPL advisors have the potential to win the trust and assets of high-net-worth clients, according to Poch. "LPL has 11,000 advisors all over the U.S. who are extremely well integrated in their local communities," he says. "They've got a terrific opportunity to provide advice that's delivered in a conflict-free environment" with less in the way of the "reputational issues" dogging loss-battered Wall Street firms.

"The message for advisors looking for a place to go is that some of the independent firms have everything they need -- certainly LPL has," adds Poch. "And once that message gets out, many of the barriers that existed before will start to melt away"

Boston-, San Diego- and Charlotte, N.C.-based provides non-proprietary investment products, research, and wealth-management services to advisors at about 800 firms. Its affiliated advisors manage client assets of approximately $235 billion. -FWR

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