LPL Financial reported a significant improvement in advisor recruiting during the second quarter, signaling renewed momentum as the firm prepares to integrate Commonwealth Financial Network advisors later this year, according to AdvisorHub.
LPL Financial recruited $25 billion in client assets during the quarter, a 35 percent increase from the $18.4 billion it recruited during the same period last year, AdvisorHub reports.
Chief Executive Officer Rich Steinmeier described the quarter as LPL's strongest recruiting performance in nearly two years, excluding large institutional transactions. According to AdvisorHub, Steinmeier said the results position the firm for stronger organic growth during the second half of the year.
Of the $25 billion in recruited assets, approximately $23 billion came from LPL's core independent broker-dealer channel, while another $2 billion came through the firm's expanded affiliation models.
AdvisorHub reports that LPL shifted much of its attention in 2025 to completing its acquisition of Commonwealth Financial Network and retaining the firm's approximately 3,000 financial advisors. As the company resumes broader recruiting efforts, its recruiting-related expenses have also increased.
Transition assistance loan amortization reached $142 million during the quarter, nearly 60% higher than the $89 million reported one year earlier. The company expects that expense to increase to approximately $150 million later this year. Despite the increased spending, company executives stated that LPL's recruiting packages do not represent the highest offers available in the marketplace.
According to AdvisorHub, Steinmeier identified additional opportunities to recruit advisors from wirehouses and regional brokerage firms. He said LPL continues to gain consideration from those advisors but wants to engage with a larger number of potential recruits.
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