LPL CEO's Firing Catches Some by Surprise

Joe Anthony, president and co-owner of public relations firms Gregory FCA, said in another message to ThinkAdvisor that while he has no “context on what exactly he [Arnold] said or did, [LPL] seemed to take a buttoned up approach about it. Having a continuity plan ready to announce was a good step to cut off any speculation about a leadership vacuum.”

Arnold’s termination “comes across as a fairly tidy management of a significant corporate issue,” Anthony added.

Nick Morgan, founder and president of the Investors Choice Advocates Network, said in another email that LPL’s firing of Arnold could be a way “to forestall an enforcement action.”

The Securities and Exchange Commission and the Financial Industry Regulatory Authority “have shown an increasing appetite to bring enforcement actions for what would previously have been considered internal employment and management issues, as in, for example, the SEC’s $35 million settlement with Activision last year,” Morgan said.

“As a result, it would not be surprising to see more broker dealers investigating and terminating senior management as a preemptive attempt to avoid such regulatory scrutiny.”

‘Unfortunate’

Garrett Vanderpool, a cybersecurity expert, said in another post on LinkedIn: “Wow, this is unfortunate. I personally had the privilege of exchanging a few emails with Dan Arnold over the last few years. He has always been kind and super helpful with direction when I had a question. What you do in private matters more than what you do in public. We all have good days and bad days but it’s important we exercise restraint and self control.”

Simon Dude Granner, founder of PCFO, said in another post on LinkedIn: “I didn’t personally know Dan Arnold but I know many LPL advisors that spoke very highly of him. My heart goes out to Dan and his family as well as all the LPL advisors and internal stakeholders that will be affected by this transition.”