LPL continues strong recruiting from Securities America in 2023

investmentnews.com:

Even though recruiting slowed down in the first half of this year to hit the lowest levels since the credit crisis, some broker-dealers and registered investment advisors are having success in hiring and recruiting from rivals. For example, LPL Financial recruited 47 financial advisors over the first half of the year from Securities America Inc.

To put that in context, LPL recruited nearly as many financial advisors from Securities America in 2023 as it did over the entire 12 months of 2022, when 52 advisors left Securities America to register with LPL Financial, according to theInvestmentNews Advisors on the Move data.

LPL has always been known as an aggressive recruiter, and recently it’s been offering the lure of recruiting bonuses or compensation to advisors based on the assets and advisor controls, rather than just as a percentage of his or her annual revenue. This has boosted the recruiting bonus, also known as a transition pay package, to financial advisors who are willing to take LPL’s deal over a traditional amount.

Securities America is part of the Osaic network of broker-dealers, formally Advisor Group, which this summer started to consolidate its eight broker-dealers under one roof.

LPL, Osaic and Cetera Financial Group, each a giant network of financial advisors, are all competing fiercely on recruiting advisors right now, one recruiter noted.

“They’re fighting amongst themselves, so they are creating transition pay packages that are aggressive,” said Jeremy Belfiore, CEO of Trusted Visions Placement & Consulting.

For example, he pointed to JFC Financial Services in Lincoln, Nebraska, which left Securities America in 2020 to work with LPL. It was a giant branch office with about 100 financial advisors