LPL’s quest to surpass wirehouses gives competitors an opportunity

LPL Financial’s purchase of National Planning Holdings holds the prospect of creating a 17,000-advisor firm, but it also presents the firm’s direct competitors with an opportunity.

The $325 million acquisition boosted recruiting momentum at top independent broker-dealer competitors to LPL such as Cetera Financial Group, Commonwealth Financial Network and Securities America, according to executives with the firms. Other trends in the IBD space are also working in their firms’ favor, they said.

For instance, changes in ownership and clearing firm are “extra burdens that have an impact on your productivity, which ultimately has an impact on your profitability,” says Gregg Johnson, executive vice president of branch office development and acquisitions at Securities America.

“We are very well-positioned when situations arise where a rep is going to be forced to go through a change they didn’t choose.”

 

Source: Financial Planning

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