Another firm has spurned LPL Financial after the No. 1 independent broker-dealer acquired the assets of National Planning Holdings earlier this year. A second recent announcement from an ex-SII Investments practice displays that many advisors have opted for LPL, however.
Brothers Pat and Paul Ferrigno, along with their brother-in-law, Greg Mirecki, decided to take their firm Ferrigno Financial to FSC Securities rather than make the transition to LPL, they said this week. The three former SII planners, who are based in Washingtonville, New York, oversee more than $300 million in client assets under administration.
The breakaways have served as a boon for FSC parent Advisor Group, which has recruited 583 new advisors so far this year. Advisor Group BDs have lured at least five ex-NPH practices with $4.2 billion in client assets since the LPL deal.
"FSC is a medium-sized firm, so we felt a little more comfortable based on the size of the firm than with LPL or Securities America,” says Pat Ferrigno, 49. “They seem to be more open to the advisor really being an independent advisor.”
A spokeswoman for SII Investments didn’t immediately respond to a request for comment on Ferrigno’s move, and a spokesman for LPL declined to comment. LPL has begun to unveil the many new teams in its fold from the first half of the transition.
In the past three weeks alone, LPL has announced the addition of three former National Planning practices with $7 billion in client assets. Twin brothers Thomas and Robert Fross, who advise on $530 million in client assets at their Florida-based practice, also said last week that they will join LPL from SII.
“In a world where size is looked upon as a negative, in fact, LPL’s size was a huge positive,” Thomas Fross said in a statement. “We remain independent, but now we have a huge support system behind us with enhanced compliance support, technology resources and consulting expertise.”
On the other hand, the Ferrigno brothers opted for the smaller BD. Their father, Douglas Ferrigno, launched their Central Valley-area practice back in 1969. They spent 23 years with SII Investments and its predecessor before officially moving to FSC Securities on Nov. 10, according to FINRA BrokerCheck.
FSC’s custodial relationship with Pershing, their prior and current custodian, also played a role in their decision, according to Pat Ferrigno and Mirecki. Multiple conversations with FSC Securities CEO Derek Burke also displayed how much the BD wanted them as clients, they add.
“We are excited to have Ferrigno Financial join the FSC community,” Burke said in a statement. “We believe that their strong family values and exemplary client service make them a valuable addition to our firm.”
FSC Securities, which is based in Atlanta, Georgia, is the 23rd largest IBD by revenue. The firm tapped Burke, the former president of Waddell & Reed, to be its CEO in September. FSC's revenue has fallen for two years in a row, but Burke has pledged to return the 1,000-advisor firm to “growth mode.”
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