By Andrew Welsch

When LPL Financial said it would acquire rival wealth manager Commonwealth Financial Network last March, Commonwealth's approximately 2,900 advisors had a choice: stay with LPL or find a new home. A new report sheds light on how many Commonwealth advisors have headed for the exits.

From the time of the acquisition announcement until the end of last year, 653 Commonwealth advisors, or 22.5%, took the latter path, according to the report, from AdvizorPro and Muriel Consulting.

That number raises the question of whether LPL's " 90% retention target" was overly sanguine. When LPL announced the closing of the acquisition, it didn't specify whether that goal was for the number of advisors it retained or the amount of Commonwealth assets. Its second- and third-quarter earnings reports and footnotes to other public statements suggest it was for assets, however.

Losing more than 20% of Commonwealth advisors, however, will reduce the amount of assets under LPL's management and the commissions or advisory fees those assets generate for the company. When advisors leave one firm for another, the majority of their clients and those clients' assets typically follow them.

LPL shareholders and Wall Street analysts may get an update on the issue Thursday afternoon, when the San Diego-based company plans to report its fourth-quarter results. A company spokeswoman declined to comment, saying the company was in a blackout period ahead of the earnings report.

On Monday afternoon, LPL shares were changing hands 1.2% lower while the benchmark S&P 500 was up 0.7%.

Commonwealth advisors didn't rush for the doors immediately following the news their firm was being acquired by LPL, according to the AdvizorPro/Muriel Consulting report. "Instead, departures built steadily through the spring and summer, peaked in late summer and early fall, and slowed as the year closed."

During the company's third-quarter earnings call in October, CEO Rich Steinmeier said the company was progressing toward its 90% retention target. "Thus far, advisors representing nearly 80% of assets have signed to stay with Commonwealth and LPL," he said.

Commonwealth was known for its tightknit culture and high-quality advisors. LPL executives said they intended to maintain the brand and community. Still, LPL's acquisition turned into a recruiting frenzy as rivals swooped in to offer Commonwealth advisors substantial recruiting bonuses to switch firms.

Commonwealth and LPL both operate independent broker-dealers. Advisors affiliated with an independent broker-dealer own their own practices but function as 1099 contractors to the IBDs, relying on them to provide a trading platform, technology, and other services.

The AdvizorPro and Muriel report says that approximately two-thirds of departing advisors remained within the independent broker-dealer channel. One-third went to the registered investment advisor sector. The report cautions that asset levels associated with departing advisors aren't always publicly available, and assets under management ultimately determines revenue outcomes.

Raymond James Financial nabbed the largest share of Commonwealth advisors, according to the report. Kestra Financial, Cambridge Investment Research, and Cetera were also popular destinations for Commonwealth advisors.

Some of the departures have been quite large when measured by client assets. Earlier this month, Wells Fargo said a former Commonwealth team that oversaw more than $1.3 billion in client assets joined its independent broker-dealer.

LPL, one of the nation's largest wealth management companies, has grown steadily in recent years through acquisitions and advisor recruiting. It works with more than 32,000 financial advisors and has approximately $2.3 trillion in brokerage and advisory assets. In addition to its independent broker-dealer business, it also has a channel that directly hires advisors as employees.

Write to Andrew Welsch at andrew.welsch@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 26, 2026 14:51 ET (19:51 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.