LPL continues strong recruiting from Securities America in 2023

LPL continues strong recruiting from Securities America in 2023
LPL, Osaic and Cetera Financial Group are all 'fighting amongst themselves' to lure advisors, one recruiter notes.
AUG 23, 2023

Even though recruiting slowed down in the first half of this year to hit the lowest levels since the credit crisis, some broker-dealers and registered investment advisors are having success in hiring and recruiting from rivals. For example, LPL Financial recruited 47 financial advisors over the first half of the year from Securities America Inc.

To put that in context, LPL recruited nearly as many financial advisors from Securities America in 2023 as it did over the entire 12 months of 2022, when 52 advisors left Securities America to register with LPL Financial, according to the InvestmentNews Advisors on the Move data.

LPL has always been known as an aggressive recruiter, and recently it's been offering the lure of recruiting bonuses or compensation to advisors based on the assets and advisor controls, rather than just as a percentage of his or her annual revenue. This has boosted the recruiting bonus, also known as a transition pay package, to financial advisors who are willing to take LPL's deal over a traditional amount.

Securities America is part of the Osaic network of broker-dealers, formerly Advisor Group, which this summer started to consolidate its eight broker-dealers under one roof.

LPL, Osaic and Cetera Financial Group, each a giant network of financial advisors, are all competing fiercely on recruiting advisors right now, one recruiter noted.

"They're fighting amongst themselves, so they are creating transition pay packages that are aggressive," said Jeremy Belfiore, CEO of Trusted Visions Placement & Consulting.

For example, he pointed to JFC Financial Services in Lincoln, Nebraska, which left Securities America in 2020 to work with LPL. It was a giant branch office with about 100 financial advisors and now has around 350, he said.

"Since JFC Financial joined LPL, they have been crushing it with recruiting," Belfiore said. "They have top-tier payouts and pricing. JFC is a pretty well-oiled machine. For advisors, it's like working with a mini-broker-dealers inside a large broker-dealer."

An Osaic spokesperson declined to comment.

"Independent advisors are changing firms at a more rapid clip than in recent years, which is in part driven by market disruptions," Rich Steinmeier, managing director and divisional president for business development at LPL, wrote in an email. "LPL has a strong offering and is well positioned to offer solutions for those seeking a partner for their businesses."

Earlier this week, InvestmentNews reported that a total of 6,757 advisors moved between advisory and brokerage firms over the first two quarters; down 16.6% from the total in the comparable period last year and the lowest level of first-half activity observed in the data, which go back to 2009.

According to government data, the size of the advisory profession has nearly doubled since then. The data on advisor moves exclude moves resulting from mergers and acquisitions, as well as those between related firms.

Smaller wealth managers using Gen AI to punch above their weight, says Accenture strategist

Latest News

Bridgewater's flagship hedge fund surges amid volatile markets
Bridgewater's flagship hedge fund surges amid volatile markets

The firm's flagship fund, which invests in stocks, bonds, currencies, and commodities, saw accelerated gains as some peers lost ground.

ICI floats '40 Act revamp to support middle-class wealth creation
ICI floats '40 Act revamp to support middle-class wealth creation

Policy proposal offers recommendations on dual-share class funds, semi-transparent ETFs, and expanded flexibility for closed-end funds to include private market assets.

Trump-induced turbulence tests 60-40 strategy's limits
Trump-induced turbulence tests 60-40 strategy's limits

With bonds failing to provide a safety net for steeply falling stock prices, many investors are letting go of their "set it and forget it" approach.

More workers dipped into their retirement savings last year, Vanguard finds
More workers dipped into their retirement savings last year, Vanguard finds

Sneak peek into annual defined contribution plan report shows average participant balances reached an all-time high amid rising equity markets.

Decades-old will leaves fate of late actor Gene Hackman's $80M fortune uncertain
Decades-old will leaves fate of late actor Gene Hackman's $80M fortune uncertain

The iconic actor's death alongside his wife, Betsy Arakawa, leaves pressing questions about what happens next to his assets.

SPONSORED Beyond the all-in-one: Why specialization is key in wealth tech

In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies