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LPL Holds on to 51 FAs and $2 Billion in Assets from Departing Firm

By Alex Padalka December 11, 2018

An office of supervisory jurisdiction on LPL Financial’s hybrid RIA platform has recruited dozens of advisors this year from a firm that opted to leave LPL in April, according to LPL. But the departing firm says it expects to finish the year with 350-plus advisors.

Independent Advisor Alliance, the OSJ, has apparently been able to lure 51 advisors who oversee $2.3 billion from Independent Financial Partners so far in 2018, according to a press release from LPL.

IAA also expects to bring on 17 more IFP advisors in the first quarter of 2019, LPL says.

As of the end of March, IAA worked with 153 independent financial advisors in 19 states overseeing more than $5 billion, according to the press release. To support the incoming advisors from IFP, IAA has hired 10 new support staff in 2018, LPL says.

“There is a common theme to the conversations I have with IFP advisors who are considering a choice of stay with IAA,” Michael Gordon, managing director of business development at IAA, says in the press release. “They’re looking for innovation and the latest in fintech, transparency and a culture of collaboration and support. We deliver on every one of those needs.”

William Hamm, CEO of IFP disagrees with Gordon's appraisal, telling FA-IQ that IAA's "statement about the latest fintech and other features seems to imply that IAA is the only organization that focuses on this. We have developed a true open architecture platform of choice built upon the latest and greatest state-of-the-art technology."

Hamm says many of the advisors who have indicated they are staying with LPL have told him that, “the answer is not no, the answer is just not now.”

"We believe that in time, many of those that are staying with LPL will reevaluate the situation and choose IFP as their advisor service foundation," says Hamm.

IFP opted to leave LPL in April and set up its own broker-dealer.

At the time, IFP’s more than 500 financial advisors oversaw $9.49 billion in discretionary assets under management and $40.5 billion in overall assets under advisement.

In October, LPL CEO Dan Arnold said on the company’s earnings call that about a third of IFP’s advisors had already made a decision, with “three out of every four” opting to stay with LPL.

The same month, however, Chris Hamm, IFP’s chief operating officer, said around 200 advisors were planning to stay with IFP.

William Hamm tells FA-IQ that IFP expects to finish its first year as a broker-dealer with 350-plus advisors.