After hitting a record number of financial advisors and client assets recruited, the CEO of LPL Financial says an industry-wide decline in broker movement does not apply to the company.
LPL Financial disclosed its second-quarter earnings on August 2 after completing the integration of a mega $25 billion transfer of client assets into the business under CUNA brokerage services and revealing its agreement to acquires private banking group from Boenning & Scattergood company with 40 employed advisors and $5 billion in client assets. The “broader slowdown in adviser movement over the past two quarters” is not happening at LPL, CEO Dan Arnold said.
The firm’s recruitment among traditional independent advisers resulted in practices with about $9 billion in client assets committed to the firm in the second quarter, he noted.
“Historically, during the early stages of high market volatility, advisors often focus on supporting existing clients and may pause to make strategic decisions like changing companies,” Arnold said. said in prepared remarks. “However, once advisors have acclimated to the conditions, they often use times like this to consider new options for their practice, likely creating an opportunity for us from a recruiting perspective.”
For key takeaways for financial advisors and other wealth management professionals from LPL’s second quarter results, scroll through the slideshow. To see the company’s earnings coverage for the previous quarter, Click here.