LPL Financial Acquiring Atria Wealth Solutions, 2,400 Advisors Impacted!

Welcome to Cross Search. I’m Jodie Papike. Yesterday, it was announced that LPL will be acquiring Atria Wealth Solutions. That consists of 2,400 advisors at seven broker dealers. And those seven firms are Cuso, Sorrento Pacific, Grove Point, Cadaret Grant, Next Financial, SCF Securities, and Western International. We have seen a tremendous amount of consolidation in the marketplace over the last several years. And today, I just wanted to point out that there are really two major types of acquisitions. On one hand, you have the type of acquisition where a firm is acquired and the purchasing entity, and in a lot of cases recently, that’s been private equity firms. They come into the firm and make promises that essentially nothing will be changing. They’ll be keeping the back office of the firm, along with the clearing firm, the technology, and the financials that the advisor is used to. In this scenario, there’s no repapering, and there’s really not as much for an advisor to consider if they’re going to stay at the firm or if they’re going to look at their options. With the scenario that we had announced yesterday, and that is LPL acquiring Atria, that takes a lot more consideration for the advisor.

And the reason why is because LPL would be looking at absorbing these advisors into their back office. LPL is a self-clearing firm. So that means that advisors will have a different clearing firm they’ll be working with, a different technology platform, a different back office, and they will essentially, they will, be moving their licenses over to LPL. That takes some consideration on the advisor’s part. Think of it this way. An advisor really needs to vet LPL as if they’re going out and doing a broker their dealer search on their own. They need to make sure that their business mix is a good fit for them, that the technology needs are what they need them to be, that they have the product selection that they need to have for their current business. So that takes a a little bit more time, takes a little bit more consideration on the advisor’s part. And in some situations, we don’t know for sure yet, more will be revealed as time goes on. But in some situations, when a firm acquires an entity and rolls up advisors, that acquiring firm will consider whether they want to take on every advisor. They typically will do CRD checks to make sure that there’s no regulatory issues and that that individual advisor is a good fit for them.

So obviously, there are a lot of moving parts in this acquisition. It is a significant acquisition in our marketplace, and more will be revealed. If you have any interest in exploring your broker-dealer, or RIA needs, give us a confidential call. We would love to talk to you about your options.

Jodie Papike

Jodie Papike is the CEO & Managing Partner of Cross-Search, the first third-party, independent broker dealer advisor and executive placement firm. Since joining Cross-Search in 1997, Jodie has been consulting with financial advisors transitioning to new independent broker dealers, guiding them through the entire process of identifying their most appropriate options, negotiating a deal and transitioning clients. Jodie has an intricate knowledge of the securities industry and a deep understanding of each of the major independent broker dealer firms, enabling her to help advisors find and transition to a broker-dealer that best suits their needs. Cross Search has placed thousands of advisors, producing more than 375 mill. in gross dealer concessions. Jodie takes the utmost pride in finding a firm for an advisor that will not only better their career, but will also be a good home for them for years to come. Jodie is a frequent speaker at industry conferences, is regularly quoted and published in publications such as Investment News, Registered Rep, Financial Planning, Life Insurance Selling and Advisor One. Jodie earned a Bachelor of Arts degree from San Diego State, graduating with honors.

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