LPL Retaining Larger, High-Quality Commonwealth Advisors

Core Insights - LPL Financial is currently experiencing an asset retention rate of over 80% from Commonwealth Financial Network advisors, which is below the original target of 90% but executives remain optimistic about achieving this goal [1][2] Group 1: Advisor Retention and Performance - The average advisors who have signed to stay with LPL are larger, faster-growing, and higher producers compared to those who have left [2] - LPL's top recruiters are focused on retaining Commonwealth advisors, indicating a strategic emphasis on maintaining advisor relationships [2] Group 2: Conversion and Future Plans - LPL is on track to complete the conversion of Commonwealth by the fourth quarter of 2026, with plans to resume organic recruiting efforts as the conversion approaches [3] - The firm anticipates a return to more normalized recruiting outcomes, driven by increased win rates in traditional markets [4] Group 3: Market Position and Recruitment - The acquisition of Commonwealth is seen as a validation of LPL's market position, attracting attention from W-2 advisors [5] - In the fourth quarter, LPL recruited $14 billion in assets, with $104 billion in total recruited assets for 2025, and an increase in advisor headcount to 32,178 [5]