Prudential Financial Completes Integration with LPL Financial Platform, Delivering Experience Upgrade for its Retail Arm, Prudential Advisors

Rhea-AI Summary

Prudential Financial and LPL Financial have completed their strategic integration, announced in August 2023. The partnership transitions Prudential's retail broker-dealer and investment advisory services to LPL Enterprise. LPL now supports over 2,800 Prudential Advisors financial advisors serving 3.5 million American families. LPL has invested more than $300 million in platform technology and integration. Approximately $25 billion in assets have been onboarded to the LPL platform, with the remaining $35 billion expected to transfer in the coming months.

Positive

• Growth in advisor base from 2,600 to 2,800 over the past year
• Access to LPL's expanded investment platform and wealth management capabilities
• $25 billion in assets successfully onboarded to LPL platform
• Additional $35 billion in assets pending transfer

Negative

• None.

Insights

Financial Analyst

The strategic integration between Prudential and LPL Financial represents a significant development in the wealth management sector. The $300 million technology investment and onboarding of $25 billion in assets (with $35 billion more pending) demonstrates substantial scale. This partnership expands LPL's institutional client base while providing Prudential's 2,800+ advisors access to enhanced wealth management capabilities.

The deal strengthens LPL's competitive position in the broker-dealer space and creates new revenue streams through platform fees and expanded services. For LPLA shareholders, this represents meaningful asset growth and recurring revenue potential. The successful integration and advisor growth from 2,600 to 2,800 during the transition period indicates strong execution and minimal attrition risk.

NEWARK, N.J. and SAN DIEGO, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Prudential Advisors, the retail arm of Prudential Financial, Inc. (NYSE: PRU) and LPL Financial Holdings Inc. (Nasdaq: LPLA) finalized today the launch of their strategic relationship, first announced in August 2023.

This first-of-its-kind relationship between Prudential and LPL enhances the client and financial advisor experience, expands advisor offerings and will accelerate growth opportunities for both firms.

Following the transition of Prudential’s retail broker-dealer and registered investment advisory services and operations to LPL Enterprise LLC, an affiliate of LPL Financial Holdings Inc., LPL now supports more than 2,800 Prudential Advisors financial advisors — that has grown from approximately 2,600 during the past year — who collectively serve 3.5 million American families. Prudential and LPL are collaborating on advisor recruiting efforts, leveraging the significant resources and new capabilities of both firms to attract top talent to Prudential Advisors.

“For Prudential Advisors, this relationship significantly enhances our advisor offering by adding LPL’s wealth management platform, financial solutions and industry-leading advisor and client-support capabilities — building on our strong brand, best-in-class leads programs and supportive culture,” said Brad Hearn, president, Prudential Advisors. "Together, Prudential and LPL are leveraging our collective strengths and core capabilities to benefit financial advisors and their clients, and we are excited to bring this new level of capabilities to our advisors.”

Over the past year, LPL has invested more than $300 million to build the technology platform, integrate and onboard Prudential Advisors. This investment will improve capacity and ease of doing business for Prudential Advisors’ financial advisors and their clients, while offering an expanded investment platform for more than 28,000 LPL advisors, including those at its other 1,000 institution clients.

“We have a deep respect for Prudential and share their belief that every American deserves access to personalized financial advice,” said Ken Hullings, EVP, Institution Client Success, LPL Financial. “The conversion to the LPL platform marks the launch of a long-term partnership that brings extensive wealth management capabilities to Prudential Advisors. We remain committed to empowering growth for our clients through improved efficiencies, comprehensive solutions and innovative technologies.”

Prudential Advisors’ financial advisors now have access to additional services that create capacity and enable new capabilities, helping them focus on the growth of their businesses while continuing to serve their clients’ financial needs.

As of November 18, approximately $25 billion in assets have been onboarded to the LPL platform from Prudential Advisor’s broker-dealer and investment advisory business. The remaining $35 billion of assets are expected to onboard over the next several months.

For more information about Prudential Advisors and the strategic relationship with LPL Financial, please visit advisors.prudential.com.

Forward Looking Statements
Certain of the statements included in this release, such as those regarding the expected onboarding of assets associated with the strategic relationship and the benefits anticipated of the relationship, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on current expectations and beliefs concerning future developments and their potential effects upon Prudential, LPL or both. In particular, no assurance can be provided that the assets reported as serviced by financial advisors affiliated with Prudential will translate into assets serviced by LPL or that the benefits that are expected to accrue to Prudential, LPL and advisors as a result of the strategic relationship will materialize. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, and there are certain important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties or delays of LPL in transitioning advisors affiliated with Prudential Advisors, onboarding clients and businesses or transitioning their assets from Prudential Advisors’ current third-party custodian to LPL; the inability of LPL to sustain revenue and earnings growth or to fully realize revenue or expense synergies or the other expected benefits of the transaction, which depend in part on LPL’s success in onboarding assets currently served by advisors with Prudential; disruptions to Prudential’s or LPL’s businesses due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with financial advisors and clients, employees, other business partners or governmental entities; the inability of LPL or Prudential to implement onboarding plans; the choice by clients of Prudential affiliated advisors not to open brokerage and/or advisory accounts at LPL; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; and the effects of competition in the financial services industry, including competitors’ success in recruiting Prudential affiliated advisors. Certain additional important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” (in the case of Prudential) or the “Risk Factors” and “Special Note Regarding Forward-Looking Statements” (in the case of LPL) sections included in each of Prudential’s and LPL’s most recent Annual Report on Form 10-K. Except as required by law, Prudential and LPL do not undertake to update any particular forward-looking statement included in this document as a result of developments occurring after the date of this press release.

About Prudential Advisors
Prudential Advisors supports the growth and success of more than 2,800 financial advisors across the country, backed by field leaders and headquarter associates. The business enables financial advisors to help individuals and families work toward their financial goals through personalized advice and comprehensive solutions.

About Prudential Financial, Inc.
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.6 trillion in assets under management as of September 30, 2024, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for nearly 150 years. For more information, please visit news.prudential.com.

About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that LPL should work for advisors and institutions, and not the other way around. Today, LPL is a leader in the markets we serve, serving more than 28,000 financial advisors, including advisors at more than 1,000 institutions and nearly 600 registered investment advisor firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional.

Securities and Advisory services offered through LPL Enterprise, LLC (“LPL E”), a registered investment advisor. Member FINRA/SIPC. LPL E and its affiliated companies provide financial services only from the United States.

“Prudential Advisors" is a brand name for the proprietary retail sales channel of The Prudential Insurance Company of America (“PICA”) and its insurance company and other affiliates (collectively “Prudential”). Prudential Advisors’ financial professionals are licensed insurance agents of Prudential who, pursuant to a strategic relationship between Prudential and LPL Financial, separately offer securities and investment advisory services through LPL E, solely as registered persons of LPL E.

LPL E is a registered investment adviser and broker-dealer (Member FINRA/SIPC), and an affiliate of LPL Financial (LPL F). LPL E and LPL F are not affiliated with Prudential.

Prudential Financial, Inc., Prudential Advisors, PICA, LPL Holdings Inc., LPL F, and LPL E are separate entities.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Enterprise.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

CONTACTS
Prudential Financial Media Relations
Claire Currie
claire.currie@prudential.com
(973) 204-9531

LPL Media Relations
media.relations@lplfinancial.com
(706) 254-4100

LPL Investor Relations
investor.relations@lplfinancial.com

Tracking #658339 

FAQ

How much did LPL Financial (LPLA) invest in the Prudential integration platform?

LPL Financial invested more than $300 million to build the technology platform and integrate Prudential Advisors.

How many advisors does LPL Financial (LPLA) support from Prudential after the integration?

LPL Financial now supports more than 2,800 Prudential Advisors financial advisors, up from approximately 2,600 during the past year.

What is the total asset value being transferred to LPL Financial (LPLA) from Prudential?

The total asset value is $60 billion, with $25 billion already onboarded and the remaining $35 billion expected to transfer over the next several months.