LPL Financial lost the custodian business of a $1.3 billion RIA firm to TD Ameritrade, according to a press release.
Fragasso Financial Advisors, a Pittsburgh, Pa.-based firm moved its custodian business from LPL to TD Ameritrade, according to the release. The move will be effective August 2.
The firm chose to move to TD Ameritrade because its services better align with the firm’s RIA business model, and TD Ameritrade will better support the company’s future plans for growth, according to the firm.
Brokerage accounts only contribute a small percentage to the firm’s overall revenue. Fee-based advisory including asset management and financial planning are currently the firm’s central area of focus.
As a result, Louisville, Ky.-based Private Client Services (PCS) will serve as the firm’s broker-dealer, also beginning on August 2. LPL has provided custodian and broker-dealer services for Fragasso since the firm was founded in 1996, the release said.