No recruiting 'slowdown' for LPL after adding 1,750 advisors
After reaching a record number of financial advisors and incoming recruited client assets, LPL Financial’s CEO says an industry-wide dropoff in broker movement doesn’t apply to the firm.
LPL Financial disclosed its second-quarter earnings on Aug. 2 after completing the onboarding of a mega-move of $25 billion in client assets into the firm under CUNA Brokerage Services and unveiling its agreement to acquire Boenning & Scattergood’s Private Client Group business of 40 employee advisors and $5 billion in client assets. The “broader slowdown in advisor movement over the past couple of quarters” isn’t playing out at LPL, CEO Dan Arnold said.
The firm’s recruiting among traditional independent advisors resulted in practices with about $9 billion in client assets committing to the firm in the second quarter, he noted.
“Historically, during the initial stages of elevated market volatility, advisors often focus on supporting existing clients and may pause on making strategic decisions like switching firms,” Arnold said in prepared remarks. “However, after advisors have acclimated to the conditions, they will often use times like this to consider new options for their practice, likely creating an opportunity for us from a recruiting standpoint.”
For the key takeaways for financial advisors and other wealth management professionals from LPL’s second-quarter earnings, scroll down the slideshow. To see coverage of the firm’s earnings in the prior quarter, click here.
