LPL Financial, the largest independent broker-dealer by headcount, continued its rapid expansion in the fourth quarter of 2023, increasing its advisor count by 27 percent to 28,888. According to AdvisorHub, the firm added 6,228 advisors primarily through its agreement to serve as the broker-dealer for 2,800 Prudential Financial advisors and its acquisition of Atria Wealth Solutions, which brought in an additional 2,200 advisors.

LPL's assets under management surged 28 percent year-over-year, reaching $1.7 trillion, up from $1.3 trillion. These acquisitions significantly contributed to the firm's growth, with Atria adding $88 billion in assets and Prudential transferring $40 billion from Fidelity in the fourth quarter, with another $23 billion expected in early 2024.

Financially, LPL reported a quarterly profit of $271 million, a 6 percent increase year-over-year, while revenue climbed 13 percent to $3.5 billion.

Newly appointed CEO Rich Steinmeier, who took over in October after the abrupt departure of Dan Arnold, emphasized the firm's commitment to expanding its affiliation models to enhance advisor recruitment. In the fourth quarter, LPL attracted advisors managing $13 billion in assets to its core independent channel and added approximately $2 billion to newer models such as Strategic Wealth Services, advisor custody, and the employee segment.

Despite LPL's aggressive recruitment strategy, Steinmeier acknowledged that industry-wide advisor movement has slowed to around 5 percent, down from the historical rate of 6 percent to 6.5 percent. AdvisorHub also reports that executives at Stifel Financial and Raymond James Financial have echoed similar concerns about the increasingly competitive recruiting landscape.

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