A Top LPL Advisor and Advocate Talks Secure Act 2.0, DOL Fiduciary Rule

My testimony was very focused on everyone having a right to advice. But I do think there should be some guidance and rules about how we should do our job.

What are your thoughts about Regulation Best Interest, mandated by the SEC?

It’s fine. It just got put into practice. We need to make sure that we share with clients what the rules are, how they pay for their investments and how they are to be treated.

Now there’s some conversation in Washington that the DOL [fiduciary rule] might be revisited. I think that will confuse things.

When the original was put in place, it showed that it actually hurt people for getting advice and being able to have financial advisors help them. It divided people that weren’t making as much money [from those who made more]. There was research [about that concerning] the Hispanic population.

Does your Washington work help expand your value proposition as an advisor?

For a long time, I never shared it with my clients. I didn’t know if it would resonate. Then we sent them an email that gave a bit of an overview about the pieces of legislation that we worked on and the number of people we met with.

The response was fantastic; the clients felt we were looking out for their best interest. We turned it into a part of our everyday conversation so our clients feel as though they’re being listened to. They love to know that we’re [in Washington] to talk about things that matter to them.

In every client review, we talk about the stock market, the economy and advocacy efforts in Washington that could affect their taxes, money and investments.

Do you ever talk politics with your clients?

No, because they know we don’t go to Washington to talk about politics. We have a Republican lobbyist and a Democrat lobbyist. When I became the LPL Government Relations Council chair, it was really important to me that we have representation on both sides. I want to know what’s happening on both sides so that I can report back to our clients.

You have an all-woman team, including your daughter, Lisa VanArsdale, who is your business partner, and your sister, Heidi VanArsdale Little, an administrative assistant. Do you have many female clients?

Yes. We have a few more women, maybe, than men. We have a lot of married couples, a lot of single women.

When we looked back at everything we did in order to understand why a man would want a female financial advisor, [we found that] all our male clients want to make sure that a female that’s very important to them — a mother, a wife, a daughter — is feeling as safe and comfortable with their financial advisor as they are.

Why aren’t more women attracted to becoming financial advisors?

That’s starting to change. But back in the day [the business] was all commission-driven, and there were a lot of nighttime appointments.

Also, I don’t think anyone told [college] students that working as a financial advisor was a career path.

The old [traditional] firms recruited men. By the time I decided to find a new career, I wandered into this and never looked back. It’s a fantastic career for women.

Before becoming a financial advisor, you worked at McKesson Corp., a wholesale pharmaceutical company, for a number of years. What was your job?

I came up in sales. I started by calling on independent pharmacies. I got [several] promotions and [ultimately] became vice president of sales.

What’s one thing McKesson trained you in for sales presentations?

There was a lot of training. We had to practice a lot: how to make eye contact, how to use full sentences, how to make sure to stick with three bullet points — don’t overcomplicate things.

Did you become an independent financial advisor right away?

No. I started at an insurance company that had a financial planning arm. They had proprietary [products]. I figured out very quickly that I didn’t want to be captive; so I stayed there only briefly.

I didn’t want to sell something because it was directed. I wanted to make sure I got to help create the portfolio and find the right fit for each person based on their needs.

What’s the biggest challenge to financial advisors today?

The regulatory environment is pretty challenging right now. There are a lot of rules. One of the reasons I chose LPL [as my BD] is because they have a fantastic compliance department. I want to know I’m protected and have people looking out for my best interest so I can look out for my clients’ best interest.

I want a clear understanding of the rules so I can stay current and within the boundaries. There’s a lot going on right now.