LPL sees dip in number of reps

The number of brokers at LPL Investment Holdings Inc. continues to drop, just as the company prepares for an initial public offering.

LPL Investment Holdings, the largest independent broker-dealer in the United States., had 12,017 representatives and advisers at the end of September, according to a third-quarter earnings statement released last Monday.

The total number of advisers and registered representatives dropped 49 from the end of June, when there were 12,066. At the end of March, LPL reported 12,026.

LPL acknowledged that last year’s consolidation of three broker-dealers it acquired from Pacific Life Insurance Co. in 2007 continued to be a drag on its broker head count.

After LPL moved the reps of Associated Securities Corp., Mutual Service Corp. and Waterstone Financial Group Inc. onto its clearing platform in September 2009, 138 reps and advisers left the firm before the year’s end. LPL has said that after the integration, 720 reps and advisers from those broker-dealers left LPL.

In its statement, LPL noted that it added 128 new reps and advisers during the 12-month period ended Sept. 30. Known as a recruiting juggernaut throughout the decade, the firm recruited about 1% of its total rep sales force in the past year.

LPL’s report didn’t take into account its announced acquisition in July of certain assets, including the advisers and brokers, of National Retirement Partners Inc. That firm has about 350 brokers and advisers who could join LPL when the deal is completed this year.

In terms of financial performance, LPL reported net income of $26.1 million for the quarter, compared with a $1.5 million loss a year earlier. Net revenue reached $760 million, up 8.2% from a year earlier.

In June, private-equity-backed LPL filed to go public.

E-mail Bruce Kelly at [email protected].