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August 24, 2023 at 10:10 AM
What You Need to Know
- Assets held at Fidelity's National Financial, other third parties and Prudential should move to LPL by late 2024.
- LPL plans to expand its platform and services to some 2,600 Prudential Advisors’ financial professionals.
- The firm estimates this new business should result in $60 million a year or more in earnings.
Prudential Financial will move some $50 billion in investment advisory and annuity assets now custodied by Fidelity’s National Financial Services unit, other firms and Prudential to LPL Financial as part of a deal announced early Thursday.
For its part, LPL will expand its platform and services to some 2,600 Prudential Advisors’ financial professionals.
After the transition — set to wrap up in the second half of 2024 — Prudential Advisors will continue to “offer financial planning, investment, insurance and retirement solutions, enhanced by the improved capabilities of the LPL platform and utilizing LPL for clients’ brokerage and investment advisory needs,” according to a statement.
LPL estimates this new business should result in $60 million a year or more in earnings after Prudential Advisors’ $50 billion of assets have moved onto its platform from Fidelity and other custodial firms.
The broker-dealer also expects the total cost of onboarding and integrating the assets to be $125 million, with roughly 40% of these expenses set to be recognized in the second half of 2024.
As of June 30, the firm’s total platform assets stood at $1.24 trillion. LPL worked with some 21,942 advisors as of the second quarter, a jump of 421 from March 31 and up 1,071 from June 30, 2022.
