LPL signs on $36 billion insurance company B-D as clearing client

As LPL Financial continues to pay top dollar for recruits, it is also expanding its clearing and custody businesses and said on Monday that CUNA Brokerage Services Inc. will move its brokerage and advisory assets, $36 billion and close to 550 advisers who work at credit unions, to LPL in early 2022.

LPL is not buying CUNA Brokerage Services; rather it will be the back office to the wealth management business of CUNA Mutual Group, a mutual insurer with a large focus on credit unions. CUNA Brokerage Services currently uses Pershing as its clearing firm.

LPL has spent years trying to build outs its clearing and custody businesses, a part of the financial advice industry dominated by giants like Pershing and Fidelity. CUNA Brokerage Services will be one of LPL’s largest clients in the clearing and custody space, noted Rob Comfort, president, CUNA Brokerage Services, in an interview.

“CUNA Mutual is the front office and LPL is the middle and back office,” Comfort said. “A tiny amount of credit unions’ actual members, the clients, use the credit union for wealth management. We’ve grown from 411 to 541 advisers over the past four years and want to serve more members. We’ve been looking at partners that could serve members digitally.”

He added that there would be some staffing layoffs among CUNA’s current roster of middle and back office employees, but some would move eventually to LPL to work.

LPL Financial is the largest independent broker-dealer with 19,000 registered reps and financial advisers under its roof.

“A lot of banks outsource this stuff,” said Rich Steinmeier, managing director and head of business development for LPL. “CUNA is one of the leaders in the credit union space and this may be a harbinger for other firms following that lead.”

Related Topics: CUNA, LPL Financial, Pershing