Why This Commonwealth Team Decided to Move to Osaic

They might be the biggest, but are they the best?

LPL’s $2.7 billion acquisition of Commonwealth, which closed this summer, set off a recruiting frenzy. While the majority of advisors are expected to join LPL’s network, some are looking elsewhere. Florida-based Hinck Private Wealth Management is the latest former Commonwealth team to align with Osaic, underscoring how LPL’s vast resources don’t necessarily make it every advisor’s preferred destination. Many Commonwealth advisors cite LPL’s culture, tech platforms and size as reasons to go in a different direction.

“The least amount of change and disruption to our clients was important to us,” said Thomas Hinck, managing partner at Hinck Private Wealth. “We also wanted incredibly good service with quick responses and not ‘take a number, we’ll get back to you.’”

Culture Shock

Commonwealth advisors often point to a great culture as what made the firm special, and fear losing that at LPL. “We were concerned about LPL’s size and their desire to get much bigger,” Hinck told Advisor Upside. “LPL says they’re going to keep the Commonwealth personal touch intact, but for how long?” After meeting with an LPL recruiter, Hinck said: “It felt like they were relying on Commonwealth executives to sell the deal, not LPL.” Plus, Hinck Private Wealth would’ve had to transition to LPL’s in-house clearing platform, instead of sticking with Fidelity’s National Financial Services system.

LPL, the largest independent broker dealer in the US, said it’s committed to preserving Commonwealth’s approach. “Unlike other firms, LPL will provide to Commonwealth advisors an advanced experience that starts with a frictionless, paperless conversion, avoiding disruption to their clients and ensuring the continuity of their businesses,” the company said in an email. “We are focused on the opportunities that matter most to advisors while honoring the community and culture that make Commonwealth such a respected company in our industry.”

New Direction. Since LPL announced the Commonwealth deal this spring, several former Commonwealth firms and advisors have migrated to Osaic:

• Joelle Spear previously advised at a firm in the Commonwealth network, but when she launched her own firm, Spear Wealth Management, in August, she did so with Osaic.
• West Virginia-based Virtus Wealth joined Osaic at the start of September. 

While LPL President Rich Steinmeier remains confident the firm will retain 90% of the roughly 2,900 Commonwealth advisors, the growing list of teams choosing Osaic and other firms suggests otherwise. Hinck called that projection “very hopeful thinking.”

M&A Not OK. Hinck Private Wealth is no stranger to mergers. The team started at A.G. Edwards before moving through Wachovia and Wells Fargo. But inefficiencies and Wells Fargo’s infamous cross-selling scandal pushed them to go independent with Commonwealth. “I’m saddened this happened,” Hinck said. “We chose Commonwealth because it reminded us of A.G. Edwards. You mattered to them. You didn’t matter to Wells Fargo. They just cared about loans and lending. You were just a number.”