LPL Financial Welcomes Southwest Advisory Group to Linsco Channel

LPL Financial (LPLA) has announced the addition of Southwest Advisory Group to its employee advisor channel, Linsco by LPL Financial. The team, led by Steve Schulte and Melissa Toler Short, brings approximately $300 million in advisory, brokerage, and retirement plan assets to LPL, further strengthening the firm's competitive position in the wealth management landscape.



The move to LPL represents a return to the firm for Schulte, who previously worked with LPL from 2010 to 2014. The advisors chose Linsco for its independence model, which allows them to own client relationships while accessing LPL's integrated wealth management platform and business resources. This hybrid model addresses a growing industry trend where advisors seek operational independence while maintaining institutional support.

The addition of Southwest Advisory Group contributes to LPL's impressive scale of $1.7 trillion in assets under custody, reinforcing its position as one of the fastest-growing wealth management firms. Based on typical revenue-sharing arrangements in the industry, this acquisition could generate approximately $2.4-3 million in annual revenue for LPL, assuming a 0.8-1% average fee structure.

Geographic expansion in Arizona enhances LPL's presence in a high-growth market characterized by wealth migration and retirement demographics. The recruitment success demonstrates LPL's ability to attract established teams from major competitors like Ameriprise, particularly significant given Schulte's previous experience with LPL.

The team's focus on collaborative relationships with CPAs and attorneys aligns with LPL's platform strategy, which emphasizes comprehensive wealth management services. This approach typically results in higher client retention rates and more stable revenue streams through market cycles.

In conclusion, the addition of Southwest Advisory Group to LPL Financial's Linsco channel is a strategic move that strengthens LPL's competitive position in the wealth management landscape. The acquisition brings significant assets under management, expands LPL's geographic presence, and aligns with the firm's broader strategy of offering advisors operational independence while maintaining institutional support.