Prudential Financial and LPL Financial Holdings on Thursday announced a strategic relationship agreement designed to enhance the customer and financial professional experience for Prudential’s retail wealth management business, Prudential Advisors, and accelerate growth for both firms.
Under the agreement, Prudential will move retail brokerage and investment advisory assets from Prudential Advisors’ current third-party custodian to LPL Financial, and leverage LPL’s broker-dealer and registered investment advisory services. The transition is expected to be completed in the latter part of 2024, subject to receipt of regulatory approval and other conditions.
LPL will expand its technology platform and servicing model to provide a tailored experience for the more than 2,600 Prudential Advisors financial professionals.
Following the transition, Prudential Advisors will continue to work with clients in all 50 states to offer financial planning, investment, insurance and retirement solutions, enhanced by the improved capabilities of the LPL platform and utilizing LPL for clients’ brokerage and investment advisory needs.
Brad Hearn, president of retail advice and solutions at Prudential, said the agreement shows the company is further investing in the Prudential Advisors business, while streamlining and reducing back-office resource demands.
“LPL’s best-in-class platform will significantly improve capabilities to help our advisers serve clients and grow their practice even faster,” he said.
Hearn added that the strategic relationship also “reinforces our commitment to improving the customer and adviser experience, while preserving the value proposition that differentiates Prudential, including strong local adviser support, a robust leads program, trusted brand equity and the flexibility for advisers to use the business model that works best for them.”
Ken Hullings, LPL’s executive vice president, enterprise business development, said the relationship will allow both companies to leverage their strengths and core capabilities for the benefit of financial advisers, their clients and their businesses.
“The partnership-oriented spirit of this agreement between LPL and Prudential is a significant milestone in our mission to offer sophisticated wealth management capabilities to more enterprise firms and their advisors,” he said. “Prudential has a revered reputation of being a pillar of the financial services industry. They have also been a valued partner of LPL’s since 1989 in the life and annuity space. We look forward to our expanded relationship and welcoming Prudential Advisors to our platform.”