LPL recruits $300 million Founders Federal Credit Union group from Cetera
LPL seen as well-suited for the credit union's wealth management unit.
LPL Financial has recruited a team managing $300 million from Cetera Advisor Networks, one of six independent broker-dealers under Cetera Financial Group.
Founders Investment Services, an advisory unit of Founders Federal Credit Union in Lancaster, S.C., will join LPL’s broker-dealer in the latest move involving the two competing IBDs.
“We feel we are positioned for growth with LPL’s partnership,” C. David Tolson III, managing director and wealth adviser at Founders Investment Services, said in a statement.
“LPL’s technology has digitized solutions to help us manage the business and deliver a quality service experience to members,” he added. “And their size and scale make it possible for us to access resources and solutions that can set us apart in the market and add more value to our members.”
The technology reference has become part of an ongoing theme between LPL and Cetera ever since the January 2017 high-profile move from LPL to Cetera by Carson Wealth.
As he was moving his $4.2 billion enterprise to Cetera, founder Ron Carson criticized LPL’s technology as being outdated.
The move by the Founders team makes sense, according to Louis Diamond, executive vice president at Diamond Consultants, because of LPL’s solid bank platform and resources to support that segment.
“The fact that this group worked with a credit union makes sense for LPL’s business model,” Mr. Diamond said. “LPL ranks among the top broker-dealers with competitive banking platforms that have the resources to build out a wealth management unit inside a bank.”
In terms of justifying the move to Founders’ clients, Mr. Diamond said it could be pegged to Cetera’s selling a majority ownership stake to private-equity firm Genstar Capital in July.
“There’s no better time nor narrative that advisers can tell clients than a change of ownership,” Mr. Diamond said. “It’s good cover in terms of not coming across as making a move for your own financial benefit. There always has to be a narrative of what’s in it for clients.”
Cetera did not respond to a request for comment for this story.
In addition to Mr. Tolson, Founders Investment Services includes financial consultants Keith Benton, Zachary Boerger, Cody Bowers, Jake Carr and Austin Terry.
The credit union, founded in 1950, operates 29 branches in North and South Carolina and serves more than 200,000 members.
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