The independent broker-dealer (IBD) landscape is undergoing a seismic shift following LPL Financial's announcement of its planned acquisition of Commonwealth Financial Network. WealthManagement reports that advisors find themselves navigating a wave of competitive recruiting offers and scrutinizing LPL's retention strategy.

Several sources to WealthManagement report that rival IBDs are aggressively courting Commonwealth advisors, sweetening their deals by 30 percent to 50 percent over standard terms. For instance, Osaic is offering transition packages ranging from 115 to 125 basis points on assets under management (AUM), with the potential to reach 150 basis points through lookbacks on net new assets in the first three years of affiliation.

WealthManagement reports that Cetera is also targeting Commonwealth advisors, reportedly offering 120 to 125 basis points on platform assets. Off-platform assets—such as 401(k) business or directly held mutual funds—carry incentives ranging from 25 to 50 basis points. Other firms, including Raymond James Financial Services and Kestra Financial, have also joined the recruitment push, reportedly offering up to 100 percent of gross dealer concessions (GDC) to attract Commonwealth advisors.

Meanwhile, LPL reportedly is offering retention packages ranging from 10 to 50 basis points, with promissory notes extending seven to ten years. A spokesperson for LPL said the firm tailored its offers specifically to Commonwealth advisors, factoring in AUM, asset mix, revenue, growth, and tenure.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.