At a glance
- The cut implies about $51 billion of those assets would leave before the mid-November conversion.
- 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.
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%
Show as table
| Part | Value | Share |
|---|---|---|
| Stays at LPL | 83% | 83% |
| Leaves | 17% | 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