In the Months After LPL's Commonwealth Acquisition...
LPL has long positioned itself as the low-cost, high-scale solution for independent advisors. To their credit, that strategy worked. They became the go-to for advisors seeking autonomy with minimal overhead.
The recent acquisition of Commonwealth, however, marked a notable shift. Two very different cultures—LPL’s scale and Commonwealth’s service-first identity—are now being blended (in theory). The integration is underway, and advisors across both platforms are feeling the effects.
Payouts Are Increasing with Emerging Tradeoffs
Let’s start with economics. Top-performing Commonwealth firms—those doing $4–5M+ in revenue—are being offered 100% payouts over five years, and in some cases, as much as 125%. These deals may also include incentives like one basis point on rep-as-portfolio-manager fees.
LPL is clearly investing in retention, especially for larger teams. Negative consent transitions are the current mechanism, designed to move advisors over with minimal disruption. In practice, though, that transition is rarely seamless.
Service and Technology Are Under Pressure
With increased scale comes increased complexity. Over the last few months, many advisors have reported mounting frustrations with service and technology.
Some of the most common issues include:
Inconsistent tech performance — Clients are logging into Account View and seeing inaccurate data, missing balances, or even other people’s accounts.
Client work instability — Frequent outages have made daily operations more difficult.
Turnover in service teams — Many advisors feel left behind, unsure who to contact or where to escalate time-sensitive issues.
For firms managing hundreds of millions or more, these disruptions are more than minor annoyances. They can undermine trust, especially with clients nearing retirement or managing large transactions.
The Cost-Benefit Equation Is Evolving
LPL's traditional value proposition relied on efficiency and affordability. That still matters. However, many advisors are beginning to rethink what’s worth paying for.
In some cases, switching to a slightly more expensive platform with stronger service or more responsive support creates real long-term value. Upfront capital offers are also changing the conversation. Advisors can offset higher ongoing costs by reinvesting those dollars into technology, staff retention, or acquisitions. Structured properly, the economics can still work in your favor.
The Bottom Line
LPL is obviously going to continue being a dominant presence in the industry, but I am seeing a growing trickle of LPL advisors that are preparing to leave. They feel that LPL has, in a sense, left them. The low-cost, high-reliability value prop is showing cracks in the midst of these big strategic swings. The acquisition of Commonwealth is revealing where the limits of scale meet the need for personal service.
If you’re questioning whether your platform still aligns with your business goals, now is the time to explore your options. Not because you need to make a move, but because staying informed is how you stay in control.
When you're ready to talk through what’s happening behind the scenes or evaluate a potential transition, I’m here. Let’s have the conversation.