What the Commonwealth Transition Reminds Us About Recruiters
The Commonwealth acquisition by LPL is a great case study in the world of advisors and recruiters. As one advisor told me in the early days, “Mike–it’s blood in the water. These recruiters are bombarding us.” In many of these cases, the most aggressive recruiting is coming from other big competitors like Raymond James.
It highlights the glaring fiduciary problem the recruiting industry faces–but shockingly few people are talking about.
Nearly every advisor over 40 years old has probably lived a version of this: “I don’t want to just sell one product to everyone.” So many of the advisors at Commonwealth specifically went independent because they wanted the freedom to match clients with the best fit for them.
I keep asking, “Who’s doing this for the advisor?”
The Recruiting World Should Take a Hint
You have firms like Raymond James who throw enormous amounts of upfront money as their recruiting strategy, but their recruiters, like the advisors of old, can only sell one fit. I don't mean to paint this as a pure brokerage-versus-advisory thing. I’ve got good friends—good people—at firms who only represent one platform. But the reality is, in those models, they’re aligned with the firm before the advisor.
When will we see a larger shift toward recruiters leaning into the fiduciary role?
Whether it’s Commonwealth or another acquiring firm, you’re hearing one thing from them, and something totally different from competing offers. And time and time again, I see the advisor stuck in the middle.
Mixed Messages from Recruiters
Just yesterday, I spoke with a Commonwealth advisor who said, “They’re going to help us acquire and recruit.”
He was surprised, even a little alarmed, when I told him: “They won’t help you acquire or recruit unless they’ve exhausted all other options. They’re going to funnel acquisitions to OSJs they own before they partner with individual advisors.”
Because at the end of the day, whether it’s LPL or Cetera or another group, these firms want to acquire directly. They want to recruit directly. Only after that will they start supporting you. And by then, the terms might’ve changed—or the opportunity passed.
This is exactly why I believe in what I do.
Having an experienced, independent recruiting guide—someone who you choose, who represents you—matters. Someone who’s not trying to close a deal, but trying to help you make the right move for the next decade.
I sit on the same side of the table as the advisor.
I take the time to thoroughly understand what you want in a firm.
I work on your behalf to help you source and vet firms with those attributes.
I help you create a short list of top firms to consider.
I go through the meeting process with you, sifting through fluff and helping to compare offers. (Negotiating too)
And I do all of it with full compensation transparency. A lot of recruiters are incentivized to recommend firms that give them higher payouts–and there’s no requirement in our industry for them to disclose it…
It’s not just about the money. It’s about whether the firm you’re joining can help you grow, support your clients, and stick with you for the long haul. The Commonwealth transition is just the latest reminder: if you don’t have someone truly on your side, you’re walking into a negotiation without real representation.
If you're thinking about a move and want someone in your corner to help you sort through the noise, I’m here. No pressure. Just perspective.