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December 14, 2017 at 10:03 AM
LPL Financial has shared the latest tally of large advisor groups joining it recently in the wake of its purchase of the National Planning Holdings’ broker-dealers in August.
Seven groups moved onto LPL platforms from Investment Centers of America and National Planning Corp. with between $500 million and $999 million of client brokerage and advisory assets — for a total of at least $3.5 billion of client assets and up to nearly $7 billion.
Meanwhile, four large-producing NPH-affiliated firms that joined LPL come on board with a total of $9 billion of assets: Discovery Financial of Red Wing, Minnesota, with $1.1 billion; The Planners Network of Santa Rosa, California, with $4.3 billion; Trilogy Financial of Costa Mesa, California, with $2 billion and Zuk Financial Group of Lake Forest, California, with $1.6 billion.
The 11 groups moving onto LPL’s platforms, thus, are expected to bring between roughly $12.5 billion and up to $16 billion in combined client assets.
“We are committed to executing their transition successfully and to deepening our relationships as we further introduce advisors to the depth of capabilities, technology and resources they can leverage to manage and grow their businesses,” said Bill Morrissey, LPL managing director and divisional president of business development, in a statement.
Over the past few months, LPL executives have said that the NPH advisors will be moved onto its platforms in two onboarding waves by March 30, 2018. When it announced the acquisition several months ago, the four NPH broker-dealers included some 3,200 advisors with $120 billion of assets.
“As we welcome new advisors, we can leverage our scale to provide our advisors with the capabilities they need to stay competitive and be positioned for success today and into the future,” Morrissey explained on Thursday.
The independent broker-dealer has estimated that these transitions will entail costs of between $40 million and $60 million in account-transfer fees, clearing expenses, technology expenses and the like. The company also has budgeted about $100 million for forgivable loans, with three- to five-year time horizons, for this “onboarding assistance.”
