Fidelity is mounting a strategic counteroffensive after the $2.7 billion sale of its largest broker-dealer client, Commonwealth Financial Network, to LPL Financial. With 2,900 advisors and $385 billion in assets, Commonwealth's exit represents a considerable loss in Fidelity's clearing and custody business, as reported by InvestmentNews.

According to senior industry sources, Fidelity is working behind the scenes to retain advisor relationships by leveraging its extensive RIA custodian network. "Fidelity is trying to recruit these advisors," one executive told InvestmentNews.

InvestmentNews reports that this kind of mid-transaction shake-up is not new. When firms like LPL acquire boutique competitors, especially ones known for tech-forward service models like Commonwealth, it creates an opportunity for rival platforms and RIAs to poach advisors who may not want to get absorbed into a corporate giant.

Fidelity, meanwhile, is leaning into its dual role as both a custodian and a clearing partner to offer a flexible path forward. "Fidelity is well-positioned to help advisors of any size navigate the wide range of options," the firm said in a statement.

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