LPL Financial expects to retain 83% of Commonwealth Financial Network’s client assets, down from its prior goal of 90%, executives said on Tuesday.
They unveiled the revision following LPL’s third quarter earnings report and as it prepares for the final shift in mid-November of Commonwealth advisors to the LPL brokerage and advisory platform.
“With only two weeks until conversion, we have increased clarity on final asset retention, which we now expect to be approximately 83%,” LPL Chief Executive Rich Steinmeier told stock analysts on a conference call.
Some advisors who had committed to stay have since changed their mind, Chief Financial Officer Matt Audette added.
“If you look at where we were last quarter, we were right around 85% for folks that had signed,” Audette said. “We just had a small number of advisors that had signed who decided not to stay,” he said. “It’s as simple as that.”
LPL announced its $2.7 billion purchase of Commonwealth in March 2025 when the smaller rival had around 3,000 brokers and $300 billion in assets. Steinmeier said during a July earnings call that the integration was progressing well and that it remained on track for 90% retention.
At the same time, LPL has shifted its focus from retention back to external recruiting. The company recruited $24 billion in client assets and attracted net new assets of $29 billion, representing a 5% annualized growth rate, according to its earnings report.
LPL’s client assets rose about 10.8% year-over-year to $2.6 trillion. Advisory assets grew at a rate of 15.9% to $1.6 trillion. Brokerage assets rose 3.7% to more than $1 trillion, the company reported.
LPL’s net income, adjusted for the Commonwealth purchase, rose 12.7% to $471 million on total revenues that climbed 17.4% to $5.3 billion.
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