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LPL Shares Info on Reps Recruited in Q1

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LPL Financial (LPLA) shared details on 67 financial advisors it recruited in the first quarter. Almost two-thirds of this group of new reps, 64%, have client assets of $100 million or less and come from a broad mix of broker-dealers. Fifteen of the new affiliates, though, moved to LPL from the four wirehouse firms.

The independent broker-dealer, which also serves as an RIA custodian, stated that it attracted 10 teams of two FAs and four individual advisors with $100 million in client assets and up; 16 FAs and one team of two reps with between $50 million and $100 million in assets; and 25 reps with between $30 million and $49 million in assets.

“LPL continues to recruit high-quality advisors of various production levels across all channels,” said Bill Morrissey, managing director and divisional president of Independent Advisor Services, in a statement. “We believe that our technology solutions, service and resources set us apart within the independent broker-dealer marketplace by providing advisors more opportunities to meet the diverse needs of their clients.”

Joining from Morgan Stanley (MS), for instance, were Kelly Kuennen and Tim Clepper in Hudson, Ohio; Lester and Sara Botkin in McMurray, Pennsylvania; Stephen Kelly in Dunedin, Florida; and Katherine Stellar of Aliso Viejo, California.

Russell Wittman in San Diego, John Carter in Cummings, Georgia, and Riccardo Margaritelli in Winnetka, Illinois, moved to LPL from Merrill Lynch (BAC).

The IBD ended Q1’15 with 14,098 affiliated reps, a net gain of 62 from the previous quarter and 372 more than year ago; it did not disclose the total number of new advisors that joined it in the period. Total advisory and brokerage assets were $485 billion, including $105 billion in assets custodied for hybrid RIAs.

Excluding the RIA assets, LPL’s affiliated reps had a total of $380 billion in assets, representing average assets under management per FA of $27 million.

In contrast, Ameriprise Financial (AMP) said its 9,691 reps, the majority of whom are indie advisors, had total assets of $453 billion in Q1, or $47 million per rep on average. Raymond James (RJF) has about 6,400 FAs in different channels with $502 billion in assets under administration, which is roughly $78 million per rep as of April 30.

UBS’ (UBS) and Morgan Stanley’s employee advisors had average AUM per rep of $150 million and $129 million, respectively, in the first period of 2015.

Also in Q1, LPL paid $11 million in regulatory charges, including fines and legal and regulatory consulting fees. Earlier this month, the Financial Industry Regulatory Authority required LPL to pay nearly $12 million in fines and restitution associated with its inadequate supervision of the sale of several investment products.

— Check out LPL Financial Expands HNW Push on ThinkAdvisor.


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