LPL Offers Commonwealth Advisers New Client Bonus, 90%+ Payout for RIA Option
By Staff
As LPL Financial prepares to finalize its acquisition of Commonwealth Financial Network, third-party reporting said that LPL’s retention offer for Commonwealth advisers includes a bonus for attracting new client assets and an attractive option to affiliate directly with LPL’s corporate registered investment adviser for a higher payout.
Sources familiar with the matter indicate that the independent broker-dealer offers – structured as forgivable loans with an eight-year lockup – are designed to maximize adviser retention following a mid-2026 platform conversion.
One key incentive provides Commonwealth financial advisers with 50 basis points on all net new client assets they bring to LPL. This bonus is applicable for an agreed-upon period, ranging from 12 to 24 months, after their transition to the LPL platform is complete.
Furthermore, Commonwealth advisers are being offered the opportunity to immediately affiliate with LPL’s corporate registered investment adviser once the conversion concludes. This option, previously unreported, allows these advisers to retain over 90% of the revenue they generate, with LPL taking a minimal fee for administrative and compliance support. This direct affiliation model contrasts with earlier reports suggesting LPL might restrict Commonwealth advisers to only direct affiliation with LPL rather than through an LPL-affiliated enterprise.
The incentives have been standard components of LPL’s retention packages since the outset of their outreach to Commonwealth advisers in April, according to Citywire and its sources.
Previous reports indicated that LPL’s customized retention offers to Commonwealth advisers have ranged from 30 basis points to as high as 80 basis points on their clients’ assets under management.
LPL announced its $2.7 billion definitive purchase agreement to acquire Commonwealth – then, the largest independently owned wealth management firm in the United States – back in March. The purchase, slated to close in the second half of 2025, was initially reported to involve approximately $285 billion in client assets and around 2,900 advisers.
LPL has projected an investment of roughly $485 million toward retaining and onboarding approximately 90% of Commonwealth’s adviser force. The aggressive approach comes amidst offers from rival brokerage firms, such as Cetera, who are also vying to attract Commonwealth advisers.
“On balance, the transaction is going very well. We’re progressing in line with our expectations … tracking toward our 90% retention target,” said Rich Steinmeier, chief executive officer of LPL Financial, during a May 2025 earnings call discussing LPL’s first quarter results.
Commonwealth has turned heads this month by adding at least two independent adviser teams, both formerly with Osaic. Rochester, N.Y.-based Angelo Planning Group, or APG, reported advising on more than $1.5 billion in client assets, making it one of Commonwealth’s largest new affiliates to date. Most recently, Phoenix-based Patrick Funke & Associates joined and reported on advising on more than $430 million in client assets.
As of May 31, 2025, LPL Financial supported more than 29,000 financial advisers that served approximately $1.9 trillion in total advisory and brokerage assets.
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