Cetera is doubling down on efforts it launched earlier this year to poach Commonwealth Financial Network advisors before they move to LPL Financial
In an “open letter, part two,” Cetera Wealth Management President Todd Mackay made the case to Commonwealth advisors that Cetera could help them avoid some of the pitfalls they might find in a move to LPL. This letter follows one Mackay sent in April, imploring Commonwealth advisors to consider Cetera—a call made by other advisory firms, including Osaic, Raymond James, and Kestra.
“Over the past several weeks, we’ve had honest, eye-opening conversations with many of you,” Mackay wrote. “Our conversations have made one thing unmistakably clear: You’ve built something meaningful—rooted in independence, trust, and purpose. And now, you’re watching that foundation start to shift.”
Specifically, Mackay raised questions for Commonwealth advisors about their ability to maintain their teams and technology stacks following the
March announcement that LPL, the country’s largest independent broker/dealer, would acquire Commonwealth.
“Here’s what you should ask yourself,” he wrote. “Will the back-office team you’ve come to rely on be consolidated? Will the Fidelity/NFS custody and clearing model you’ve optimized for be replaced? What happens if the tech stack that set you apart is sunset? Is your flexibility quietly narrowing—one decision at a time?”
LPL did not immediately respond for comment on the letter.
During an earnings call in May, LPL CEO Rich Steinmeier expressed confidence in his firm retaining 90% of Commonwealth advisors, noting regular engagement and retention discussions with those advisors. On that call, Chief Financial Officer Matt Audette added that, despite the competitors vying for Commonwealth advisors, he didn’t see many “credible players” that could poach them.
LPL expects to close the transaction in the second half of 2025 and finish converting advisors to its platform in early 2026.
In his letter, Mackay stressed that the move to LPL would erode Commonwealth advisors’ independence and ability to work with the technology and processes they like with clients.
“The fact is that LPL cannot achieve the synergies it has touted without consolidating technologies, eliminating clearing and custody choices, and dramatically reducing headcount,” he said.
In February of 2024, LPL acquired Atria Wealth Solutions, which had 2,400 advisors and about $100 billion in assets. According to state records in California, New York and Texas, as of this May, it had plans to lay off more than 150 workers combined, though LPL noted via emailed that it had been working with employees for potential new roles at LPL.
Mackay argued that any monetary offers from LPL would not make up for the change to workflows and teams.
“With so much of what you’ve relied on going away, what do you get in exchange?” he wrote. “A retention check. A few basis points to make the pain feel like progress.”
He noted a choice among operating models for advisors at Cetera, which include its newly launched RIA and Branches Channel and its Advisor, Institutions, Large Enterprise and Tax & Accounting channels.
Last week, Cetera launched the new channel to help manage its independent and employee-based RIA operations for its advisors who opt for either the W-2 or supported independence route.
Like other national broker/dealers, Cetera has been competing to add advisors over the years, even as some have jumped to other firms. As of March, its network had about 12,000 advisors and institutions such as credit unions. It oversees $553 billion in assets under administration and $246 billion under management.
LPL has over 29,000 financial advisors and the wealth management practices of about 1,200 financial institutions; it oversees about $1.8 trillion in brokerage and advisory assets.
LPL also has an affiliation model that it launched in 2023.
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