LPL keeps adding advisers during the pandemic

But the firm reports a slowdown in the pace of bringing new advisers aboard

LPL Financial on Thursday reported a net increase of 210 brokers and financial advisers in the three months that ended in June, for a total of 16,973.

The largest independent broker-dealer in the industry, LPL has been aggressively recruiting financial advisers and registered reps, as well as making small acquisitions.

Over the past couple years, LPL has been selectively offering advisers a recruiting bonus in the form of a forgivable loan that pays an adviser at least 50 basis points on assets transferred to LPL’s corporate registered investment adviser, a potentially far more lucrative structure for the adviser than traditional recruiting deals.

The second quarter slowed down a little bit; in the first quarter, the firm added 299 reps and advisers.

In the second quarter, recruited assets were a new high at $11.1 billion, the company said in its second quarter earnings release.

“These results, against the backdrop in which industry adviser movement was down by over 30% from a year ago, are a testament to the appeal of our model and the performance of our business development team,” said LPL’s CEO, Dan Arnold, during a call Thursday afternoon to discuss earnings with analysts and investors. “Looking at the past year, recruited assets were nearly $39 billion, which is also a new high for the team.”

Meanwhile, LPL is preparing to hold its national annual conference in August as a virtual experience.

“Similar to the format of our traditional in-person meeting, the three-day program will include live streamed general sessions, a mix of breakout meetings, technology demos, a virtual sponsor exhibit hall, and online networking,” Arnold said.

“With the event now online, we can potentially reach all 17,000 of our advisers and their staff, rather than the 5,000 who might normally attend in person,” Arnold said. “As we look forward, we expect new virtual approaches like these will become another way that we can support our advisers and their clients over time.”