Prudential Advisors, the retail arm of Prudential Financial Inc., and LPL Financial Holdings Inc. finalized the launch of their strategic relationship, which The DI Wire first reported in August 2023. Via the agreement, the entirety of retail and registered investment advisory assets of Prudential’s advisers transferred from Fidelity National Financial Services to LPL Enterprise LLC, an affiliate of LPL Financial Holdings.
In what the companies have called a first-of-its-kind relationship, the partnership is designed to enhance the client and financial adviser experience, expand adviser offerings, and accelerate growth opportunities for both firms.
Following the transition of Prudential’s retail broker-dealer and RIA services and operations, LPL now supports more than 2,800 Prudential financial advisers – that has grown from approximately 2,600 during the past year – who collectively serve 3.5 million American families. Prudential and LPL said they are collaborating on adviser recruiting efforts, leveraging the significant resources and new capabilities of both firms to attract top talent to Prudential Advisors.
“For Prudential Advisors, this relationship significantly enhances our adviser offering by adding LPL’s wealth management platform, financial solutions and industry-leading adviser and client-support capabilities – building on our strong brand, best-in-class leads programs, and supportive culture,” said Brad Hearn, president of Prudential Advisors. “Together, Prudential and LPL are leveraging our collective strengths and core capabilities to benefit financial advisers and their clients, and we are excited to bring this new level of capabilities to our advisers.”
Over the past year, LPL has invested more than $300 million to build the technology platform, integrate, and onboard Prudential Advisors. According to LPL, the investment will improve capacity and ease of doing business for Prudential Advisors’ financial advisers and their clients, while offering an expanded investment platform for more than 28,000 LPL advisers, including those at its other 1,000 institution clients.
“We have a deep respect for Prudential and share their belief that every American deserves access to personalized financial advice,” said Ken Hullings, external vice president, institution client success at LPL Financial. “The conversion to the LPL platform marks the launch of a long-term partnership that brings extensive wealth management capabilities to Prudential Advisors. We remain committed to empowering growth for our clients through improved efficiencies, comprehensive solutions, and innovative technologies.”
According to Prudential, its advisers now have access to additional services that create capacity and enable new capabilities, helping them focus on the growth of their businesses while continuing to serve their clients’ financial needs.
As of Nov. 18, approximately $25 billion in assets had been onboarded to the LPL platform from Prudential Advisor’s broker-dealer and investment advisory business. The remaining $35 billion of assets are expected to onboard over the next several months.
LPL referred to the “continued movement and onboarding” of Prudential and its assets during LPL’s third-quarter earnings presentation earlier this fall. At that time, it reported that total advisory and brokerage assets had increased 29% year-over-year to $1.6 trillion – $892 billion advisory, $708 billion brokerage. Advisory assets as a percentage of total assets increased to 56%, up from 53.5% one year ago. Total organic new assets for the company were $27 billion, which represented 7% annualized growth. LPL’s adviser account was 23,686, up 1,282 from the prior year.
Also of note this fall, Rich Steinmeier assumed the role of LPL chief executive officer on Oct. 1.
LPL Financial Holdings Inc. serves more than 23,600 financial advisers, including advisers at more than 1,000 enterprises and 580 registered investment adviser firms nationwide. Headquartered in San Diego, its total advisory and brokerage assets totaled $1.6 trillion as of Sept. 30, 2024.
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