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LPL retention cut implies $51 billion leaving Commonwealth

The retention cut comes the same week Wells Fargo raised its monthly advisor pay hurdle to $16,000.

$51Bleaving Commonwealth

At a glance

  1. The cut implies about $51 billion of those assets would leave before the mid-November conversion.
  2. A $1 million producer would lose about $8,400 in cash payout, and deferred compensation now depends on growth.
  3. For a producer deciding whether to stay, the hurdle resets the baseline an outside offer has to beat: $16,000 a month is $192,000 a year.

LPL cut its retention forecast for Commonwealth client assets to 83%.

The cut implies about $51 billion of those assets would leave before the mid-November conversion.

Wells Fargo raised the monthly pay hurdle its advisors must clear to $16,000.

A $1 million producer would lose about $8,400 in cash payout, and deferred compensation now depends on growth.

For a producer deciding whether to stay, the hurdle resets the baseline an outside offer has to beat: $16,000 a month is $192,000 a year. For a Commonwealth advisor converting in mid-November, LPL's forecast implies about $51 billion in client assets will go elsewhere.

UBS Americas reported a net decline of 43 advisors in the third quarter. Its chief financial officer called net advisor attrition "probably the industry norm," and net new assets at the unit rebounded to $16.7 billion.

LPL expects to keep 83% of Commonwealth client assets

Share of Commonwealth client assets LPL forecasts to retain versus lose before the mid-November conversion, %

  • Stays at LPL83%83%
  • Leaves17%17%
Source: LPL retention forecast for Commonwealth
Show as table
PartValueShare
Stays at LPL83%83%
Leaves17%17%

Reported by the Recruiting & transitions desk from Recruiting coverage cluster (Wells Fargo pay hurdle, LPL Commonwealth retention forecast, UBS Q3 advisor count). Published . Corrections

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