LPL loses $200 million Freedom First program to Level 4

Financial Advisors

apart from Continued wave of mega recruits When moving from banks and other financial institutions to LPL Financial, a credit union’s wealth management program lowered the company to a midsize competitor.

Level 4 group — Dallas-based company owned by accounting firm Carr, Riggs & Ingram CPA and Advisors Left LPL in 2020 after acquiring its own brokerage firm — Recruited three financial advisors with $200 million in client assets for the wealth division of Freedom First Credit Union, based in Roanoke, Virginia. Edmon “Jake” Tomes, his CEO at Level 4, and Steve Devlin, Program Manager at Freedom First, said: financial plan Last week, in the first public debate after the credit union brokerage change earlier this year.

Switching to Level 4 will allow Freedom First to evolve into “the advisor of the future,” Devlin said.

“There is so much we can do to really improve the quality of our customers’ financial lives, but we need the right partner,” says Devlin. “You can really tap into your expertise in areas that you might know a little bit of, but not all of it.”

Freedom First’s wealth program operated as part of a branch of Level Four for more than five years before Tomes’ company was founded. 225 advisors and $9.25 billion in client assetsleft LPL.

“Steve was one of our most talented advisors and was even on an advisory board that I went with independent advisors,” says Tomes. “We have shared that history together and are very excited about this new initiative to grow together.”

Representatives for LPL, the former brokerage firm of Freedom First, and Reading, Pennsylvania-based Goodlife Financial Advisors, an investment advisor formerly registered with the credit union, did not respond to requests for comment. . On his LPL’s first quarter earnings call last week, CEO Dan Arnold announced: Wealth Programs from Bank of the West Commerce Bank also plans to add $11 billion in client assets to its institutional services division later this year.

Since then, the relationship between banks and shinkin banks has expanded to about 1,100 financial institutions nationwide. Welcome to mass adoption in recent yearsthe LPL is doing a “really good job” supporting the program, said co-founder Eric Armstrong. compass consulting, working with wealth programs and banks. Its sheer size creates “bandwidth problems for small programs,” and for programs the size of Freedom First, he said, “it’s starting to become a little more real.”

LPL is “much bigger than anyone else,” Armstrong said. “They’re behemoths, but that’s the Achilles heel.”

Freedom First launched its wealth program in 2009 and since its inception the credit union has quadrupled and is now $1 billion in size in Southwest and Central Virginia. In addition to him program They include wealth advisors Jason Fletcher, Robert Earles and Ryan Raphael, as well as operations manager Michelle Hayden, client service representative Rita Fletcher and insurance consultant Erica Jackson. According to FINRA BrokerCheck, the team officially joined Level 4 in late January.

Level 4 is Huge shift in banking and credit union channels By adding more programs to the current group of 12 people already working at medium-sized companies, Tomes said. “I’ve been having conversations with a lot of bank and credit union executives lately,” he said.

“We want to fill a gap in the market as it continues to consolidate,” Tomes added. “You may not have a strategic partner within your organization who can actually design a growth strategy.”

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