Lpl Financial Partnership First Horizon Advisors
In a move reshaping the wealth management landscape, LPL Financial is partnering with First Horizon Advisors. The deal will bring approximately 170 advisors and $13 billion in advisory and brokerage assets to LPL’s network.
This partnership signifies a substantial gain for LPL Financial, expanding its reach and solidifying its position as a leading wealth management platform. For First Horizon Advisors, it offers access to LPL's advanced technology and broader service offerings.
The Agreement
The definitive agreement was announced this week, signaling the commencement of a transition period. The integration of First Horizon Advisors into LPL's platform is expected to occur in mid-2024, subject to customary regulatory approvals.
Terms of the agreement were not publicly disclosed. However, industry analysts suggest that the deal reflects LPL’s aggressive growth strategy and its commitment to attracting established advisory firms.
Who is Involved?
The key players are LPL Financial, a publicly traded wealth management firm, and First Horizon Advisors, the wealth management division of First Horizon Corporation (NYSE: FHN). The partnership impacts approximately 170 financial advisors currently affiliated with First Horizon.
LPL Financial, led by CEO Dan Arnold, continues to expand its network through both organic growth and strategic acquisitions. First Horizon Corporation, under the leadership of Chairman, President and CEO Bryan Jordan, has decided to transition its wealth management business to focus on other core areas.
What Does This Mean?
First Horizon Advisors will transition to LPL's brokerage and advisory platform. Their advisors will gain access to LPL’s integrated technology, research, and operational support.
Clients of First Horizon Advisors will likely see a continuation of service, supported by LPL’s extensive resources. The partnership aims to provide enhanced client experiences and expanded investment opportunities.
Where is This Happening?
The impact of this partnership will be felt across the Southeast, where First Horizon Advisors maintains a significant presence. The advisors are located in various offices primarily within First Horizon Bank branches.
LPL Financial, headquartered in San Diego, California, will extend its national footprint through this alliance. The integrated platform will be available to advisors and clients nationwide.
When Will it Take Effect?
The integration is scheduled to begin in mid-2024. The completion is contingent on customary regulatory approvals and closing conditions.
A transition plan is being developed to ensure a smooth shift for advisors and clients. Further details regarding the timeline will be communicated as the integration progresses.
How Will it Work?
First Horizon Advisors will operate on LPL's platform. This includes LPL's proprietary technology, compliance systems, and back-office support.
A dedicated team is expected to oversee the transition. LPL Financial will work closely with First Horizon Advisors to onboard advisors and integrate client accounts.
Statements from Leadership
"We are excited to welcome First Horizon Advisors to the LPL family," said Rich Steinmeier, LPL Financial Managing Director and Divisional President, Business Development. "We look forward to supporting their advisors with our integrated platform, empowering them to deepen client relationships and grow their business."
"This partnership with LPL Financial represents an exciting opportunity for our wealth management clients and advisors," stated First Horizon executives. "LPL's technology and resources will enable our advisors to deliver even greater value to their clients."
Future Implications
The partnership between LPL Financial and First Horizon Advisors highlights the trend of consolidation within the wealth management industry. Large firms are seeking to expand their reach and enhance their service offerings through strategic alliances.
This move could encourage other regional banks to consider similar partnerships. These firms will look to leverage the scale and resources of larger wealth management platforms.
Next Steps
LPL Financial and First Horizon will work together to finalize the integration plan. Advisors will receive training on the LPL platform and resources.
Clients of First Horizon Advisors will be notified of the transition. They will receive information about the enhanced services and investment options available through LPL.
The industry will be watching closely. It will assess the success of this partnership and its impact on the competitive landscape.
