It's one win for Cetera, one loss for LPL as a West Coast-based credit union has decided to relocate its business.
Los Angeles Federal Credit Union has moved its wealth management business to Cetera Financial Institutions, marking another win for Cetera as it expands its presence in the credit union channel.
The Southern California-based credit union, which oversees approximately $160 million in assets under administration through its LAFCU Wealth Management program, had previously partnered with CUSO Financial Services, an affiliate of LPL Financial. Two financial advisors, Steven Liang and John Herrera, will continue to serve the firm’s more than 75,000 members under the new affiliation.
LAFCU's decision marks the second institutional client to leave LPL in as many months, following the news of Trustmark National Bank entrusting $2.7 billion in client assets to Raymond James' Financial Institutions Division in May.
Founded in 1936 by a group of Los Angeles city employees, LAFCU has grown to become a key financial institution for individuals across the Greater Los Angeles area. In its search for a new wealth management partner, the credit union prioritized member experience and operational flexibility.
“Our leadership team kept an enhanced members’ experience in mind when looking for a new financial services partner,” Anthony Cuevas, president and chief executive of LAFCU, said in a Thursday release. He cited Cetera’s “robust technology and top-tier support,” along with the credit union’s “freedom to run our wealth management business how it will best serve our members.”
The affiliation continues a streak of credit union wins for Cetera over the past year. Since 2024, the firm has brought on several new institutional partners, including Hawaii State Federal Credit Union, California Coast Credit Union, and Citadel Credit Union, the latter of which had also previously affiliated with CUSO Financial Services.
In March 2024, Cetera also established a Credit Union Council aimed at facilitating collaboration among leaders across the segment.
LeAnn Rummel, president and chief executive of Cetera Investment Services, said the firm is committed to helping LAFCU scale its wealth management business.
“We are honored to support LAFCU Wealth Management’s continued growth by using [our] tools, technology and community-driven approach,” Rummel said.
Cetera Financial Institutions operates within Cetera Investment Services and works with more than 450 banks and credit unions. The unit reported a 99 percent institutional retention rate as of October 31, 2024, and marked its 40th year of service that same year.
The broader organization at Cetera has also been seeing movement at the top with new leadership additions, the most recent being the hiring of a new dedicated RIA division head from Mariner.
Federal prosecutors say the scheme used fake investment accounts and a fictitious financial advisor to lure victims into romance-fueled fraud.
Morgan Stanley sought to claw back recruiting bonus money from Darryl Cohen.
Referrals from centers of influence may open the door, but the real key to success for advisors comes from clarity about their ideal clients and where they want to show up.
Three advisor groups overseeing more than $700M in combined client assets head to new firms.
New research finds most Americans fear a US retirement crisis, while skepticism grows toward AI financial advice and crypto in retirement plans.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
