The chief executive of broker-dealer LPL Financial, Mark Casady, is to retire from the role on 3 January 2017 and be replaced by Dan Arnold, who currently holds the position of president.
Casady will continue to be a board member until March 3 2017, where upon he will leave the firm.
Casady, 56, told the Wall Street Journal, that he has no plans to take a full-time job in the immediate future.
He retires from LPL ahead of the Department of Labor’s fiduciary rule which is scheduled to take effect in April next year, unless it is repealed or postponed by the incoming Trump administration.
Casady said in statement: ‘I will be able to retire knowing the company is in good hands and with bright prospects for the future. Dan and I have worked together for 10 years, and I know he is a passionate advocate for our employees, advisors, and shareholders.’
Under Casady’s tenure at the helm of LPL the broker-dealer has grown significantly but it has at times struggled to keep up with this growth and been hit by a number of fines from regulators over its compliance processes and some brokers' sales practices.
The firm’s shares are down 6.6% this year and in October it was widely reported that it had appointed Goldman Sachs to explore strategic alternatives, which could include a sale.
Jim Putnam, LPL lead director of the board, appeared to play down the chance of a sale in the firm’s statement on Cassidy’s retirement.
He said: ‘As we make this transition, we are in the midst of one of our most successful recruiting years in LPL’s history. Additionally, LPL’s scale and financial performance have equipped the firm to continue investing in the business and to respond decisively to opportunities as they arise. Against this backdrop, we have great confidence in our ability to thrive as an independent public company.’
Arnold has been with LPL since 2007 during which time he has held the roles of chief financial officer, head of strategy and divisional president of the firm’s institution services business.
He has been president since March 2015 during which time he has been responsible for LPL’s long-term strategy for growth.
Arnold said: ‘As we look to the future, we remain focused on improving the advisor experience through technology, enhancing capabilities to support advisor growth, and driving operational efficiency. I see tremendous opportunity in our business, and I am excited to work together with my LPL colleagues to bring objective financial advice to millions of Americans.’