LPL’s acquisition of Commonwealth Financial Network has sparked a recruiting push among rival firms, and sources with knowledge of the deal say that the likes of Raymond James, Cetera, Wells Fargo, Morgan Stanley and Ameriprise are trying to attract elite Commonwealth advisors and teams.
While most firms declined to comment on their efforts to win over advisors who may be skeptical of landing at LPL, Ameriprise and Cetera acknowledged the interest.
“We’re having conversations with advisors from across the industry, including those from Commonwealth, who are looking to grow and affiliate with a leading brand and firm,” an Ameriprise spokesperson said. “In the current environment, advisors are attracted to the strength of the Ameriprise value proposition, our stability and track record of navigating uncertainty.”
Cetera went further, providing ThinkAdvisor with a copy of an open letter to Commonwealth advisors penned by Todd Mackay, president of Cetera Wealth Management, as well as a direct response to several questions about its recruiting strategy. The firm expressed confidence that its strong capital position and diverse range of affiliation models will help it stand out from the crowd.
“Since the acquisition was announced, we’ve seen a surge of interest from Commonwealth advisors who have expressed that they value authenticity over assimilation,” Mackay said. “We are telling Commonwealth advisors how we share their intense commitment to community, to advisor independence and the growth and success of all those we serve.”
Speaking From Experience
Mackay noted that his prior firm Avantax was itself acquired by Cetera in a $1.2 billion deal in 2023. He said that gives him credibility in conversations with advisors who are thinking about joining Cetera.
“They keep hearing about companies changing to be more like Commonwealth, but Cetera already embodies that ethos," he said. "We’re not retrofitting a model — we’re inviting advisors to a community that’s already aligned with their values.”
In the open letter, Mackay cites his experience being purchased by Cetera, saying it gives him full confidence that the firm can be a good destination for Commonwealth advisors.
“Since the purchase of Avantax by Cetera, I have seen first-hand that this advisor-centric community approach is the cornerstone to everything Cetera stands for,” he wrote. “I can unequivocally say that Cetera stands for a truly independent environment, a community driven approach to our advisors’ relationships and the alignment of our purpose with the purpose of our advisors.”
Platform Considerations
In comments shared with ThinkAdvisor, Mackay noted that Cetera has the advantages of both scale and access to platforms like Fidelity’s NFS, the clearing platform used by Commonwealth.
“Cetera is committed to engaging with our advisors in this community-centered model, including our concierge-level onboarding team that ensures a smooth transition for advisors,” Mackay added.
“While other companies have just gotten bigger, Cetera has grown and kept what’s most important to advisors — personalized relationships and community,” he said.
An LPL spokesperson emphasized that the firm will provide to Commonwealth advisors an “advanced experience” that starts with a “frictionless, paperless conversion,” avoiding disruption to their clients and ensuring the continuity of their businesses.
“We are focused on the opportunities that matter most to advisors while honoring the community and culture that make Commonwealth such a respected company in our industry,” LPL said.
"Commonwealth with LPL will not only leverage all the benefits of the Commonwealth experience, it will also deliver meaningful value to advisors through innovative technology, business and capital solutions, and M&A opportunities,” the broker-dealer added.
Recruiter’s Perspective
Simon Hoyle, recruiter and founder at RIA Choice, told ThinkAdvisor that he’s not surprised to see Cetera (and many other firms) pursuing Commonwealth advisors and teams.
“Pretty much all the [independent broker-dealers] would love to have the Commonwealth advisors move over,” he said. “The big ones have bigger pockets, and money talks. Cetera puts some of the biggest forgivable loans on the table. … Nothing wrong with that.
"What often happens at firms offering big loans, though, is that those loans are paid for, to a large extent, from client fees," Hoyle explained. "Many of the biggest IBDs are charging clients much more than the clients would pay at independent RIAs, for example.”
Private equity has to pay for the revenue stream that it's buying, the recruiter observed, then flip what was bought for a healthy profit down the road. In Cetera's case, the leadership team can point to Genstar's recent recapitalization of the BD as evidence of its longer-term commitment.
While Cetera does have a strong hand to play financially, Hoyle said, its private equity ownership structure is one factor for Commonwealth advisors to consider carefully.
“Ownership structures all have their pluses and minuses,” he noted. “In any case, this is the perfect time for advisors to look at this as an opportunity to review where they see their business in five or 10 years. The RIA space is picking up tempo, and fiduciary-oriented advisors would do well to review the various ways their business could be best suited going forward.”
These conversations can be both informative and motivating, Hoyle added, helping confirm whether the advisor should look to start or join an RIA — or stay at a broker-dealer.
Biggest Lingering Questions
One recruiter involved with concerned Commonwealth advisors is Maria Kutscher, an advisor transition consultant with Club Level Consulting.
“These past few weeks, I've been working with several Commonwealth advisors seeking to leave the firm,” Kutscher shared with ThinkAdvisor. “They have expressed a mix of skepticism and cautious optimism regarding LPL Financial’s retention.”
High on their list of concerns is the potential loss of Commonwealth’s high-touch, boutique service model, which they fear could be diluted under LPL’s more corporate structure. Likewise, they are sharing concerns over joining a firm that was previously seen as the “opposite of Commonwealth” in terms of service philosophy and advisor relationships.
Other commonly cited concerns are the potential loss of advisor autonomy and the possibility that the client service model could shift, potentially affecting the strong client relationships they've built. There’s also uncertainty around how tech stacks, custodial platforms and compliance workflows may change under LPL ownership.
Kutscher has also heard some skepticism about the long-term value or strings attached to the retention deals being offered, as well as questions about how long Commonwealth’s current leadership — particularly CEO Wayne Bloom — will stay and how much influence they’ll retain within LPL.
Pictured: Todd Mackay
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