1. A more profitable and adaptable payout model. Advisers at the full-service firms often complain about how their payouts can change and production targets can be adjusted. However, that flexibility allows their firms to weather transitions in a rapidly evolving landscape. LPL and their ilk, with their 90% payouts and independent contractors, simply cannot pivot rapidly enough. If advisers’ revenue drops because of the loss of commissions, one firm can change payout structure, the other takes a direct hit to their bottom line.

Source: The DOL rule kicks in. Will independent broker-dealers survive?