NEW YORK, Dec 5 (Reuters) - LPL Financial Holdings Inc , the largest U.S. independent broker dealer and registered investment adviser, on Monday said that Mark Casady will step down as chief executive in January, and it named Dan Arnold as his replacement.
The announcement comes as LPL faces steep regulatory hurdles that have forced it to lower fees on many retirement advice offerings and reportedly consider a sale.
Arnold, 51, currently LPL’s president, has been with the firm for nearly 10 years. He will become CEO and president on Jan. 3.
Casady, 56, will remain on LPL’s board of directors as a non-executive chair until March, when he plans to retire, the firm said in a statement.
Casady joined LPL in 2002 and is credited with growing LPL from what was primarily an independent business to one of the largest U.S. providers of technology and compliance services. LPL provides products and support to more than 14,000 independent financial advisers and 700 banks and credit unions.
The firm’s growth under Casady came with some regulatory troubles. LPL was fined repeatedly by the Financial Industry Regulatory Authority for supervisory failures, including an $11.7 million fine in May 2015.
Earlier this year, LPL announced plans to lower commissions on some high-fee retirement offerings and invest more in adviser training and supervisory technology.
The changes are in response to the U.S. Department of Labor fiduciary rule, which is set to take effect in April.
The rule is intended to force brokerages to put clients’ best interests ahead of business profits, and it has led firms like LPL to change how and what their brokers are paid on retirement products in order to eliminate any potential conflicts of interest.
Arnold told Reuters in August that the firm expects its costs to stay flat at around 2 percent. (Reporting by Elizabeth Dilts; Editing by Leslie Adler)