LPL snatches $280m advisory team from Cetera

In the ongoing fight between three giant networks of financial advisors, LPL Financial has landed a blow against Cetera Financial Group.

Legacy Wealth Advisors, a Town and Country, Missouri-based firm that managed $280 million in advisory, brokerage and retirement plan assets, has left Cetera to join LPL’s broker-dealer, RIA and custody platforms. Legacy Wealth Advisors is led by founder and president Kevin Loyd, a 22-year industry veteran who began his career with Franklin Financial Services, according to BrokerCheck.

The firm was looking for greater ease of doing business and service experiences that differentiated from other providers on the market. This drove the switch from Cetera to LPL, Loyd said in a statement.

“With LPL being an all-encompassing firm and its own custodian, we believe it will be much easier to service our clients and lower costs,” Loyd said. “LPL’s innovative technology is streamlined and more user-friendly, and its integrated capabilities will help us be more efficient. We think clients will appreciate the consolidated statements and digital tools available to access their account information. Ultimately, we will be able to serve clients more effectively, which is what they deserve.”

Loyd, who is also the host of the “When Retirement Happens” radio show, is joined by financial advisors Calvin Keth and Jeremy Spellmeyer. The team focused on retirement planning and wealth distribution.

“We make it a priority to come up with an entire road map for our clients on how and when to take the money out in the most tax-efficient way,” Loyd said. “By getting to know [clients] on a more personal level, we can develop personalized plans to maximize their goals and help ensure a meaningful financial legacy.”

LPL, Cetera and Osaic, formerly Advisor Group, are all competing fiercely with each other on advisor recruiting, InvestmentNews recently reported.

While LPL has a reputation as an aggressive recruiter, it has started offering 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, for financial advisors who are willing to take LPL’s deal over a traditional amount.

However, overall advisor movement is down in 2023. 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, according to InvestmentNews’ Advisors on the Move data.