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November 09, 2017 at 09:05 AM
LPL Financial hosted its 2017 Investor Day on Wednesday, which included comments on its ability to retain advisors acquired via its purchase of the National Planning Holdings broker-dealers in August.
According to Instinet equity analyst Steven Chubak, LPL executives said during the event that they expect 70% advisor retention from the first onboarding of reps.
That news came as Securities America said two super offices of supervisory jurisdiction with a total of over $2.4 billion in assets and 105 advisors are joining its platform from NPH.
In August, LPL said the initial purchase price for the NPH reps was $325 million. The IBD said, though, that it could pay up to $123 million more based on how much of the NPH advisors’ revenue moves onto LPL’s platform.
No contingent payment will be made if less than 72% of the advisors’ production (fee and commission revenue) is retained, “and the amount of the contingent payment increases on an interpolated basis for onboarded production in the range of 72% to 93.5%,” LPL explained at the time.
The four NPH broker-dealers — National Planning Corp., Invest Financial, Investment Centers of America and SII Investments — had a total of about 3,200 advisors with $120 billion of assets at the time the deal was made.
