LPL keeping Commonwealth’s bigger fish, CEO Steinmeier says

LPL Financial Holdings Inc. is hanging onto the largest, which means the most profitable, financial advisors affiliated with Commonwealth Financial Network, LPL’s longtime rival that it bought last year for $2.7 billion in cash.

Faced with a flurry of press releases and announcements last summer and fall from competitors like Raymond James Financial Inc. and Cetera Financial Group announcing they have successfully recruited Commonwealth advisors, LPL Financial executives have answered questions about their success in hanging on to Commonwealth’s roughly 3,000 reps, who work as independent contractors and have no contractual obligation to not leave.

The financial advice industry's curiosity regarding LPL's success in keeping Commonwelth advisors is feverish. 

One consulting firm in January released a report LPL had retained 77.5% of Commonwealth's advisors. An industry analyst days later said the number was closer to 88%. Meanwhile, LPL has repeated throughout it was targeting the retention of 90% of Commonwealth Financial’s assets. 

“We're retaining the larger advisers.” LPL Financial’s CEO Rich Steinmeier said Thursday afternoon during a conference call with analysts to discuss fourth quarter earnings.

Steinmeier reiterated that LPL was continued to expect roughly 90% retention of client assets. 

“I think there are still advisers who are making their decisions over the course of the balance of the next couple of months and maybe even through the next couple of quarters,” he said.

“Last quarter, we gave you an update that we had advisors representing nearly 80% of assets (who) have signed their agreements to stay with Commonwealth,” Steinmeier said. “And as of today, that has improved to the low 80% range of advisers, representing low 80% range of assets have signed agreements to stay with Commonwealth.”

The advisors at Commonwealth Financial Network, which is remaining a separate brand under its new ownership, are among largest producing advisors in terms of annual revenue in the financial advice business. Competitors like Raymond James Financial and Cetera Financial Group have relished the chance at competition, issuing scads of press releases last summer and fall to announce a new recruit from Commonwealth.

Meanwhile, LPL Financial Holdings reported total advisory and brokerage assets at the end of last year of $2.4 trillion, up 2% from the previous quarter. Adjusted earnings per share for the quarter were $5.23, a new high.

“For 2026, we believe a combination of the Commonwealth deal, building organic growth, rising spread income, and expense discipline will drive 20% plus EPS growth,” wrote William Blair analyst Jeff Schmitt in a note Friday morning. “We also expect a similar level of growth in 2027 as Commonwealth cost synergies are realized.”