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LPL May Be Losing a $9.5B RIA

April 10, 2018

A large hybrid RIA with close to $10 billion in discretionary assets plans to leave the LPL Financial network, sources tell InvestmentNews.

Independent Financial Partners, whose more than 500 financial advisors oversee $9.49 billion in discretionary assets under management and $40.5 billion in overall assets under advisement, currently serves as an office of supervisory jurisdiction for LPL, according to the publication. IFP now plans to set up its own broker-dealer, one of the two sources tells InvestmentNews. However, exactly when the move will take place remains unclear, according to the publication. Spokespeople for both IFP and LPL didn’t return InvestmentNews’ requests for comment.

LPL’s composition has been changing in recent months, InvestmentNews writes. In August, the company bought the assets on the National Planning Holdings network from Jackson National Life for $325 million, and offered an additional contingent payment tied to the amount of assets onboarded to LPL.

In February, LPL said it’s completed the acquisition but didn’t specify whether it’s met its target of onboarding 70% of NPH’s revenue. Many firms previously affiliated with one of the four broker-dealers on the NPH network have opted to go elsewhere rather than affiliate with LPL.

The most common destinations have been Commonwealth Financial Network, Securities America, Woodbury Financial Services and FSC Securities.

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