Bartholomew Keeps Commonwealth Tie, Moves Custody to LPL

Bartholomew & Company, a Worcester, Massachusetts–based firm that oversees about $6 billion in client assets, has registered with the SEC as a hybrid registered investment adviser and will keep its brokerage affiliation with Commonwealth Financial Network while shifting custody from Fidelity Investments’ National Financial Services to LPL Financial this fall.

Founder Tom Bartholomew started the firm at Commonwealth in 1994. Alex Bartholomew, who became CEO last year and remains chief investment officer, said the team decided more than a year ago to remain affiliated with Commonwealth as they launched an RIA arm: “We made the determination a long time ago — over a year ago — that we were staying.” He described the RIA launch as a way to establish an independent advisory practice without ending longstanding Commonwealth relationships.

About $6 billion in client assets will transfer custody to LPL’s Strategic Wealth Management platform. Approximately $3.5 billion of those assets are institutional, mainly city and town government accounts in Massachusetts and nearby states; the balance covers individual client accounts. The firm has roughly 40 employees, about half of whom are financial advisors.

Bartholomew said LPL presented a retention offer to encourage Commonwealth advisors to remain within the combined organization. He referenced repeated assurances from LPL Chief Executive Rich Steinmeier that elements Commonwealth advisors value will be preserved, including the Commonwealth brand, many back-office staff and an internal feedback system that lets advisors log complaints or suggestions. Bartholomew described the arrangement as giving the firm access to Commonwealth’s service model alongside LPL’s custody platform and scale.

LPL purchased Commonwealth last year for $2.7 billion. LPL executives projected they would retain at least 90% of the roughly $305 billion in client assets Commonwealth reported at the time of the deal. Since the acquisition announcement, hundreds of advisors have left Commonwealth for other firms, including Raymond James, Kestra Advisory Services, Cambridge Investment Research Advisors and Cetera Investment Advisers, or have formed independent RIAs.

Bartholomew confirmed other firms approached his team with transition offers, but recruitment overtures did not alter the decision to stay affiliated with Commonwealth and move custody to LPL. He said the firm expects to remain with LPL for the foreseeable future but that future recruiting or mergers and acquisitions could prompt relationships with additional custodians.

The hybrid RIA registration gives Bartholomew & Company the legal status to provide advisory services under a fiduciary standard while preserving its broker-dealer affiliation. The firm will complete operational and regulatory steps over the coming months to implement the custody change and the RIA launch. LPL did not immediately provide a comment on the announcement.