LPL Financial
From Wikipedia, the free encyclopedia
| LPL Financial | |
|---|---|
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| Type | Private |
| Founded | 1989 |
| Headquarters | 9785 Towne Centre Drive San Diego, CA 92121 |
| No. of locations | 5,475 |
| Key people | Mark Casady, CEO |
| Industry | Financial Services |
| Revenue | ▲ $2.7 billion USD (2007)[1] |
| Net income | ▲ $61 million USD (2007) |
| AUM | $282 billion[2] |
| Employees | 2,600 |
| Advisors | 11,000 |
| Website | www.lpl.com |
LPL Financial is the largest organization of independent financial advisors [3]. LPL was formed in 1989 through the merger of two brokerage firms, Linsco (established in 1968) and Private Ledger (established in 1973), and has since expanded its number of independent financial advisors from a few hundred to over 11,000 in 2008 [4]. LPL has headquarters in Boston, Charlotte, and San Diego, and over 2,600 staff assisting financial advisors with back-office support.
LPL Financial's independent advisors help clients meet investment goals through a number of financial services including equities, bonds, mutual funds, annuities, insurance and fee-based programs. Unlike many other brokerage firms, LPL Financial does not develop its own investment products, enabling the firm’s investment professionals to offer financial advice free from broker/dealer inspired conflicts of interest.
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[edit] Timeline
In 2004, LPL Financial acquired the Phoenix Companies' broker/dealer operations (WS Griffith Securities and Main Street Management), boosting its broker ranks and offering Phoenix the chance to sell its products through LPL Financial's network.
In August 2006 LPL Financial expanded its client base following the purchase of UVEST Financial Services, which provides independent brokerage services to more than 300 regional and community banks and credit unions throughout the US.
In June 2007, LPL Financial finalized its acquisition of several broker-dealers under the Pacific Select Group (aka Pacific Life) umbrella, adding 2,000 financial advisors to its books.
On August 6, 2007, LPL Financial experienced technological issues that impacted all of its financial advisors. The issues were finally resolved on August 9. Public representatives from LPL Financial have stated that the issues were caused by a technical malfunction during a major upgrade to the system. [5]
In September 2007, LPL Financial and Sun Life Financial announced a definitive agreement under which an affiliate of LPL Financial will acquire Independent Financial Marketing Group, Inc., from Sun Life Financial. Sun Life Financial is a leading international financial services organization. The LPL Financial Institution Services channel, which will manage the Independent Financial business, is the nation’s top provider of investment and insurance services to banks and credit unions. The deal is expected to close in the fourth quarter, subject to customary closing conditions including Financial Industry Regulatory Authority (FINRA) approval.
On January 1, 2008, Linsco/Private Ledger Corp. (LPL Financial Services) changed its brand name to LPL Financial.
On September 11, 2008, the Securities and Exchange Commission released settlement terms pursuant to its action which arose out of violations by LPL, a registered broker-dealer, investment adviser, and transfer agent, of the safeguards rule of Regulation S-P (17 CFR § 248.30(a)), which requires broker-dealers and SEC-registered investment advisers to adopt written policies and procedures reasonably designed to protect customer information. [6]
[edit] Key Facts
$2.7 billion in revenue
11,000 affiliated financial advisors
5,475 branch offices
Service to over 725 financial institutions
2,600 employees with headquarters in Boston, Charlotte, and San Diego
$282 billion in assets under management [7]
$79 billion in assets under management in LPL Financial's fee-based (advisory) platforms [8]
[edit] References
- ^ Income Statement
- ^ Investment News - March 18, 2008
- ^ Financial Planning.com's Total Revenue Comparison Chart
- ^ Revenues Up, Income Down at LPL Financial - Articles - Financial Planning
- ^ LPL experiences systems failure - InvestmentNews
- ^ SEC Order
- ^ Investment News - March 18, 2008
- ^ LPL Website - About Us
