LPL has budgeted $100 million for forgivable "onboarding assistance" loans.

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.”

The seven groups (with $500 million to $999 million of client assets) moving to LPL from NPH are:

  • Beacon Financial Group, Warren, New Jersey
  • Choice Financial, Fargo, North Dakota
  • Gateway Financial Partners, Glastonbury, Connecticut
  • Guaranty Bank & Trust of Colorado, Loveland, Colorado
  • Horseman Group, St. Louis
  • Keri Pugh Production Group, Greenwood Village, Colorado
  • Planningteam Financial Advisors, Bismarck, North Dakota

“On behalf of the entire organization, we are honored to welcome these impressive firms to LPL,” said Morrissey.

One group not moving from NPC to LPL is Hansen Wealth Management. On Wednesday, KMS Financial Services said Hansen is joining its advisory and brokerage platforms with about $330 million in client assets.

KMS supports groups with 350 advisors nationwide with $17.5 billion in client assets; it is a subsidiary of Ladenburg Thalmann. “We look forward to working with the members of the Hansen Wealth Management team as a key strategic partner in the next stage of their ongoing growth story,” said CEO Eric Westberg, in a statement on Wednesday.

Contingency Plan

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.

LPL Financial had some $566 billion in brokerage and advisory assets as of Oct. 31.