$12bn Merit Financial Advisors to disaffiliate from LPL

Merit Financial Advisors, a private equity-backed hybrid RIA with roughly $12bn in client assets, is disaffiliating from independent broker-dealer LPL Financial, according to a source with knowledge of the situation.

Atlanta-based Merit had been affiliated with LPL as an office of supervisory jurisdiction (OSJ) since 2010. OSJs are wealth managers that generally affiliate their brokerage business with an independent broker-dealer such as LPL, Cetera Holdings or Kestra Holdings and operate their own RIA entity. Broker-dealers typically give their OSJs preferential pricing and recruiting assistance.

Hamburger Law Firm chief counsel Brian Hamburger, an attorney for Merit, confirmed that the company ‘has decided to transition from its current broker-dealer and custodial relationship partner, LPL Financial. This strategic move is one of many that Merit has taken upon itself in support of its relentless efforts to enhance its service offerings and support its vision of creating a growth-focused enterprise for its team, clients and new advisor partnerships.’