LPL Financial says it is likely to hit its aggressive retention target of Commonwealth Financial Network advisors, with a high percentage of advisors committed to joining the firm to date.
"The transaction is progressing well, and we continue to track towards our 90% retention target. Thus far, advisors representing nearly 80% of assets have signed to stay with Commonwealth and LPL," said CEO Rich Steinmeier during the firm’s third-quarter earnings call late Thursday.
LPL announced that it was buying Commonwealth for $2.7 billion in cash on March 31. At that time, LPL had 28,888 financial advisors and $1.74 trillion in client assets, while Commonwealth had about 2,900 advisors and $285 billion in assets.
As of Sept. 30, LPL had some 32,000 affiliated advisors and $2.3 trillion in assets. It recruited about $32.6 billion in net new assets and acquired $273 billion during the third quarter.
For Q3, LPL also reported a net loss of $30 million, which included $419 million for one-time acquisition costs tied to the closing of the Commonwealth deal. Its adjusted earnings were $5.20 per share, up 25% from last year.
Lower Fees, New Pricing
On Friday, LPL said it was making a series of fee reductions and introducing a simplified pricing structure across its advisory platforms, meant to deliver what executives called “meaningful savings” in high-demand programs while helping advisors expand access to popular investment solutions.
Effective July 1, 2026, fees will be lowered for advisors utilizing LPL’s Strategic Asset Management (SAM) and Model Wealth Portfolios (MWP) advisory programs. Fees will also be lowered for end clients in LPL’s Guided Wealth Portfolios (GWP) advisory platform. At the same time, pricing tiers for advisor-paid administrative fees will be streamlined.
Within the SAM model, through which corporate affiliate advisors serve in a rep-as-portfolio-manager capacity, administrative fees will be reduced for advisors managing at least $75 million in advisory assets. Fees will be waived at $250 million — a significant reduction from the previous $500 million threshold.
Within MWP, which is LPL’s managed account solution, advisor pricing has been reduced by up to 40% for accounts in the $100,000 to $500,000 range, allowing advisors to take advantage of expanded separately managed account options and features like tax loss harvesting.
Within GWP, which is LPL’s digital advice platform, platform fees paid by end clients will be reduced from 35 basis points to 25 basis points.
The overall goal, according to the firm, is to make it easier for advisors and clients to compare and manage offerings across LPL’s platforms. The firm is also positioning the updates as part of the industrywide shift from brokerage to advisory, with 80% of LPL’s organic net new assets now flowing into advisory solutions.
Aneri Jambusaria, chief wealth officer at LPL Financial, said in a statement that advisory services are becoming central to both advisors’ businesses and their clients’ portfolios.
“This latest enhancement makes our platforms among the most competitive in the industry and underscores our unwavering commitment to equipping advisors with high-impact tools that elevate their practice, deepen client relationships and expand access to quality advice for those who need it most,” Jambusaria said.
The company further announced an enhancement to “householding capabilities” and the launch of a self-service tool that helps advisors and institutions estimate fees and prioritize the initiatives that best serve their practice and client needs.
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