Commonwealth Advisor Exodus Continues After LPL Purchase

LPL Financial’s purchase of Commonwealth Financial network is changing the independent financial advice world. Since March, at least 16 new RIAs have opened, and over 500 advisors have left Commonwealth for other firms.

Between April and November, roughly 520 individual advisors departed Commonwealth, not including those in junior or support roles, according to data from advisor database Fintrx, LinkedIn, and company websites.

This represents almost 18% of the 2,900 advisors LPL stated were with Commonwealth when the deal was announced. It’s unclear exactly what percentage of Commonwealth’s $305 billion in assets under management these departing advisors controlled, but several billion-dollar teams are among those who’ve left.

Despite the departures, LPL executives initially aimed for a 90% retention rate. In October, LPL CEO Richard Steinmeier said the firm had already secured commitments from advisors representing 80% of Commonwealth’s assets.

However, steinmeier recently admitted that keeping Commonwealth advisors on board has been more challenging than expected. LPL now anticipates all committed assets will be transitioned by late 2026.

An LPL spokesperson declined to comment on the specific numbers, referring back to executives’ statements during the October earnings call regarding retention.

Industry recruiters and competing firms have actively reached out to Commonwealth advisors, highlighting differences between Commonwealth’s smaller-firm approach and LPL’s larger scale.

“LPL clearly understands the benefits of acquiring Commonwealth,” said Julian Baneux, CEO of RIA Catalyst, a firm advising companies on RIA acquisitions. “But you’ll likely see ongoing tension between a larger institution’s culture and an acquisition target where top producers might not find the same fit.”