LPL Retains 80% of Commonwealth Assets to Date

Group 1 - LPL Financial completed the acquisition of Commonwealth Financial Network, which has 3,000 advisors and $305 billion in assets, in August, but has seen some advisors leave for other broker/dealers, including $1 billion in assets this week [1] - During a third-quarter earnings call, CEO Rich Steinmeier reported that nearly 80% of Commonwealth advisors have signed on, representing $275 billion in assets onboarded, with a target retention rate of 90% for advisors [2] - The firm projected an increase in run-rate EBITDA from $415 million to $425 million following the full integration of Commonwealth [4] Group 2 - LPL announced plans to reduce fees and simplify pricing structures across its advisory platforms, including a reduction in administrative fees for advisors managing at least $75 million in assets, with fees waived for those managing $250 million or more [5] - The firm reduced advisor-paid pricing by up to 40% for accounts within its Model Wealth Portfolios, specifically for balances between $100,000 and $500,000, and decreased platform fees for Guided Wealth Portfolios from 35 to 25 basis points [6] - LPL aims to enhance its advisory services, emphasizing the importance of providing competitive platforms that improve advisor practices and client relationships [7]