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LPL Onboarded 71 Mid-Tier Firms from NPH Purchase

January 3, 2018

Following LPL Financial’s August acquisition of the assets on the National Planning Holdings’ broker-dealer network, LPL has so far brought on 71 financial advice outfits each managing between $100 million and $499 million, according to ThinkAdvisor.

The firms were previously affiliated with Investment Centers of America and National Planning Corp., two of the four broker-dealers on the NPH network, the publication writes. The additions are expected to fetch LPL between between $7.1 billion and $35.4 billion in assets, according to ThinkAdvisor. The firms include Allegiance Financial Group, Bank of Colorado – Durango, Financial Celebrations and First State Bank 4, among others, the publication writes.

LPL previously announced it onboarded seven groups from Investment Centers and NPC, each managing between $500 million and $999 million, as well as four outfits with a combined total of $9 billion in assets, which together could bring LPL between $12.5 billion and $16 billion in assets, ThinkAdvisor writes.

But many firms previously affiliated with NPH, which LPL acquired from Jackson National Life in August for $325 million, have decided to switch affiliations.

Most recently, Scarborough Capital Management, which oversees $875 million, left SII Investments, another unit of NPH, according to InvestmentNews. Scarborough, which has 10 advisors, chose to affiliate with Independent Financial Group, the publication writes.

In December, a firm with $200 million under administration chose to leave NPC for Woodbury Financial Services, a unit of the Advisor Group. The same month, Woodbury was also able to lure a $97 million firm from NPC and a $200 million group from SII.

Another SII-affiliated firm switched in December to FSC Securities, which is also part of the Advisor Group. LPL’s acquisition of NPH includes an additional contingent payment of up to $123 million if at least 72% of the estimated $120 billion in assets on the NPH network onboard to LPL.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.
  • To read the ThinkAdvisor article cited in this story, click here.