Guests:
Roger Gershman & Brian Neville

Meet Barry:

Roger Gershman:
Welcome back. Today we’re diving into a major shakeup in the independent wealth management space. LPL’s acquisition of Commonwealth is making headlines, and we’re asking the hard questions: What does this mean for advisors? What’s hiding in the fine print? And most importantly—what should advisors be watching out for before signing any new agreement?

Joining me is one of the most trusted voices in financial advisor legal strategy, Brian Neville. Thanks for being here again, Brian.

Brian Neville:
Always a pleasure, Roger. Look, we’re in 2025, and M&A activity is still red-hot in this industry. Advisors need to understand—the devil is in the details.

It’s not just the headline. It’s not just the press release. It’s what’s in the actual contract that matters.

In a rapidly consolidating wealth management industry, the recent acquisition of Commonwealth by LPL has raised critical questions for advisors. Roger Gershman is joined by Brian Neville, a seasoned attorney and expert in advisor transitions, to unpack what this acquisition really means for Commonwealth advisors. From non-solicit clauses to vendor restrictions and data transfer headaches, this discussion cuts through the headlines and examines what’s buried in the fine print.

Watch as they break down the practical and legal risks every advisor should review before signing any new agreement.

Roger:
Exactly. A lot of advisors at Commonwealth chose it for its boutique culture and high-touch support. Now they’re being folded into the behemoth that is LPL—2 trillion in AUM and over 30,000 advisors.

Let’s talk retention packages. These sound great—maybe 50 basis points here, a year to keep the Commonwealth name, promises of a smooth transition. But what are the red flags?

Brian:
Here’s one: non-solicits. In the independent space, a non-solicit clause is totally contrary to the model. If it’s in there, it better be limited—and ideally, it should dissolve the second the advisor repays their retention loan.

If that clause survives repayment, that’s a big issue. It means an advisor could be locked down longer than they think, with their book less transferable than expected.

Roger:
There’s also the issue of data portability. Many Commonwealth advisors use vendors like Redtail or CRMs they’re familiar with. If LPL doesn’t support those systems, it’s not just clunky—it’s costly and disruptive.

Brian:
“Clunky” is generous. These transitions can be brutal. You’re talking about re-training staff, recreating data, and client frustrations when things like RMDs and bank transfers don’t flow like they used to.

The new contract could also limit your right to use specific vendors—meaning you could be forced into systems that don’t suit your practice.

Roger:
Exactly. And while advisors are told they’ll keep the Commonwealth platform “for at least a year,” we all know that custodianship is shifting from Fidelity to LPL. So your clients, who are used to Fidelity logins and services, are facing a brand-new experience.

Brian:
And that experience matters. For many clients, switching custodians is more disruptive than switching advisors.

This is the time—now—for advisors to get their agreements reviewed. Not just the payout percentages, but the contractual protections, restrictions, and vendor clauses. Don’t just assume things will stay the same.

Roger:
Great insight, Brian. We appreciate your time as always.

For advisors affected by the LPL–Commonwealth deal—or any firm facing acquisition—get smart before you sign.

🧠 Key Takeaways:

• Don’t ignore the fine print in retention packages.

• Watch for non-solicit clauses that may limit your freedom.

• Investigate restrictions on vendor use and data portability.

• Understand the impact of switching custodians—on both your practice and your clients.

• Compare your current deal with what’s available elsewhere.

TGG

As the Editor of The Gershman Group, a boutique financial services consulting firm, TGG brings expertise in financial analysis, strategic planning, and market research. With a keen eye for detail and a passion for helping businesses navigate complex financial landscapes, TGG delivers insightful, high-quality content to empower informed decisions. Backed by years of industry experience, TGG makes complex topics accessible through clear and compelling communication, shaping the firm’s thought leadership and commitment to excellence in financial services.