LPL Financial Retains Core of Commonwealth Advisors, Focuses on High-Performing Teams
Original reporting sourced from WealthManagement.com. For continuous coverage of the wealth management sector, subscribe to our daily newsletter.
In the high-stakes integration of Commonwealth Financial Network, LPL Financial is holding onto its most valuable asset: the advisors. During Thursday's fourth-quarter earnings call, firm executives revealed that commitment levels from Commonwealth advisors are "in the low 80% range" of assets, emphasizing that the teams choosing to stay are typically larger and more productive.
This update follows LPL's initial report last fall of an 80% retention rate. While some industry observers speculated the firm might fall short of its ambitious 90% long-term asset retention target, LPL leadership remains steadfast. "When you look at the advisors who have signed to stay with LPL so far, we're now just over 80%," stated Matt Audette, LPL's Chief Financial Officer. "And on average, they are larger; they're faster-growing; and they're higher producers than those that have decided to go elsewhere."
The retention effort is a top priority, with LPL's most effective recruiters temporarily focused on securing Commonwealth advisors rather than external hires. CEO Rich Steinmeier framed the challenge as one of preserving community and value. "We are deeply connected between Commonwealth and LPL to help educate them on the continuing value proposition," Steinmeier said, expressing confidence that safeguarding the Commonwealth "experience, culture, capabilities and leadership" would ultimately prove successful.
The integration is a marathon, not a sprint. LPL is on track to fully convert Commonwealth's systems and operations by the fourth quarter of 2026. Only after this conversion will recruiters fully return to organic growth efforts. Steinmeier highlighted a strategic benefit: the acquisition has raised LPL's profile among employee-model advisors (W-2 advisors) at wirehouses and regional firms, growing its capture of this segment from 9% to over 11% of all advisors in motion. "Commonwealth is a very validating event for our position in the marketplace," he noted.
The firm's broader recruitment engine remains active. LPL recruited $14 billion in new assets during Q4, contributing to a total of $104 billion for the full year 2025. Total advisor headcount ended the year at 32,178, a net increase of 50 from the previous quarter.
Industry Voices React
Michael Rodriguez, Senior Analyst at Bristol Advisory: "The 80%+ retention figure is solid, but the real story is the quality. Retaining the larger, faster-growing teams mitigates the revenue risk. This is a textbook case of strategic integration—focus on your core assets first."
Sarah Chen, Former Branch Manager & Independent Consultant: "LPL is smart to publicly highlight the 'quality over quantity' angle. It reassures the market and the remaining Commonwealth advisors that they are part of a premium cohort. The cultural integration piece Steinmeier mentioned is critical—get that wrong, and numbers don't matter."
David Feld, Host of 'The Hard Truth' Podcast: "Let's be real. 'Low 80%' is corporate speak for 'we missed our 90% target.' They're spinning the narrative to focus on who stayed, but losing nearly 20% of a acquired firm's assets is a significant bleed. This puts immense pressure on their organic recruitment to fill that gap, and the market is more competitive than ever."
Janice Powell, a veteran Commonwealth advisor who chose to stay: "The process has been lengthy, but the discussions have become more substantive. For our team, it came down to platform stability and long-term resources. LPL has demonstrated a commitment to preserving what made Commonwealth unique, which was the deciding factor."