$2-Million Wells Fargo Team Joins LPL’s New “Wirehouse” Channel
LPL Financial recruited three Wells Fargo Advisors brokers who were generating $2 million in annual revenue from a bank branch in New Jersey to its newly launched wirehouse channel this week.
LPL’s new affiliation channel, formally introduced three weeks ago, “really helped solidify everything we were looking for,” said Lynn, a 25-year industry veteran who had worked at Wells since 2002.
LPL designed SWS to attract experienced advisors with at least $200 million in client assets, well above the metrics of its typical independent contractors.
It launched it two weeks ago with the arrival of Tryon, N.C.-based brokers Mike Ashworth, Steve Collie and Katheryn Gordon. They also came from Wells Fargo Advisors, where they managed about $300 million of assets, according to LPL.
In exchange for receiving more operational support than typical brokers, SWS advisors retain a smaller percentage of fees and commissions than do traditional independent contractors but a higher payout than employee-channel brokers. The payout will exceed 60%, LPL Business Development head Richard Steinmeier said in an interview last month.
The new LPL team in New Jersey began serious due diligence in July, and met at LPL’s North Carolina headquarters in January as they neared their final decision, Lynn said.
He declined to discuss the transition package, but said the primary motivation for moving was escaping the growing demands that a bank-owned company puts on advisors and the internal channel conflicts that can distract clients.
“When a client came into the bank, there were a lot of different agendas and they’re pulled in a lot of different directions,” said Lynn, who like his colleagues is temporarily working from home as a result of the coronavirus pandemic. “Our main goal is when you walk through our door, we want you to know that everybody in the building is working for you.”
A Wells spokeswoman declined to comment.
Wells Fargo Advisors last year merged its bank branch-based brokers and its larger network of more than 10,000 private client group brokers into a single management unit.
It has been offering premium recruiting packages to replace the scores of brokers who have left in the wake of the bank’s fake-account scandals. It hired 370 brokers in 2019, but net headcount across its brokerage channels still fell by a net 456.
Reaching out to former clients and adopting new procedures is not an easy task in the best of circumstances, but Lynn said switching firms during the virus-induced sequestration has reinforced his team’s decision to rely on LPL’s technology and support functions.
”If they can deliver this way during a global pandemic, we’re very excited about what the future holds when we can really get back up and running full speed,” he said.
Pacheco, Lynn’s partner, began his career as a registered rep 29 years ago with Lutheran Brotherhood Securities Corp., and also worked at AXA Advisors and Commerce Capital Markets before joining Wells in 2008, according to his BrokerCheck history.
Fessler entered the brokerage industry five-and-a-half years ago with Wells, according to BrokerCheck.
The team is the second team to have joined LPL’s SWS channel since its official launch, an LPL spokeswoman confirmed.