Profile: LPL Financial Holdings Inc (LPLA.O)
20 May 2019
LPL Financial Holdings Inc., incorporated on October 25, 2005, is a broker-dealer, a custodian for registered investment advisors (RIAs) and an independent consultant to retirement plans. The Company provides a platform of brokerage and investment advisory services to independent financial advisors (its advisors), including financial advisors at financial institutions across the country. The Company also supported approximately 4,000 financial advisors, affiliated and licensed with insurance companies through customized clearing services, advisory platforms and technology solutions, as of December 31, 2016. Through its advisors, the Company is a distributor of financial products and services in the United States. The Company provides its technology and service to advisors through a technology platform that is server-based and Web-accessible. Its technology offerings are designed to permit its advisors to manage various aspects of their businesses. It automates time-consuming processes, such as account opening and management, document imaging, transaction execution, and account rebalancing.
The Company's practice management and training services include personalized business consulting; advisory and brokerage consulting and financial planning to support advisors in growing their businesses through its range of products and fee-based offerings, as well as wealth management services and to assist advisors serving high-net-worth clients with estate, tax, philanthropic and financial planning processes; marketing strategies, including campaign templates, to enable advisors to build awareness of their services and capitalize on opportunities in their local markets; succession planning and an advisor loan program for advisors looking to either sell their own or buy another practice; transition services to help advisors establish independent practices, and in-person and virtual training and educational programs on topics, including technology, use of advisory platforms and business development. The Company provides its advisors with integrated access to research on a range of investments and market analysis on macro-economic events, capital markets assumptions, and strategic and tactical asset allocation.
The Company operates through LPL Financial LLC (LPL Financial), its broker-dealer subsidiary. LPL Financial is a clearing broker-dealer and an investment advisor that transacts business as an agent for its advisors on behalf of their clients by providing access to an array of financial products and services. Through its subsidiary, The Private Trust Company, N.A. (PTC), the Company offers trust administration, investment management oversight and individual retirement account (IRA) custodial services for estates and families. Its subsidiary, LPL Insurance Associates, Inc., (LPLIA), operates as a brokerage general agency that offers life, long-term care, and disability insurance sales and services. Its platform provided access to over 750 product providers that offered various product lines, such as insurance-based products, alternative investments, structured products, mutual funds, separately managed accounts, exchange traded products, unit investment trusts, retirement plan products and annuities, as of December 31, 2016.
The Company's brokerage offerings include variable and fixed annuities, mutual funds and alternative investments. Its alternative investments include non-traded real estate investment trusts and business development companies, fixed income insurance, group annuities, and option and commodity transactions. LPL Financial has various fee-based advisory platforms that provide managed or customized solutions from which advisors can choose to meet the investment needs of their clients. Its fee-based platforms provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. It assists its advisors in managing their clients' cash balances through three primary cash sweep programs depending on account type: a money market sweep vehicle involving money market fund providers and two insured sweep vehicles involving banks. It offers retirement solutions for commission- and fee-based services that allow advisors to provide brokerage services, consultation, and advice to plan sponsors using LPL Financial. Its advisors, whether through LPL Financial or through a Hybrid RIA, served over 32,300 retirement plans, as of December 31, 2016.
The Company competes with Morgan Stanley, Bank of America Merrill Lynch, UBS Financial Services Inc., Wells Fargo Advisors, LLC., Edward D. Jones & Co., L.P., Raymond James Financial Services, Inc., Charles Schwab & Co., Fidelity Brokerage Services LLC, TD Ameritrade, Bank of New York Mellon, Fidelity Investments, J.P. Morgan Chase & Co, Advent Software, Inc., Envestnet, Inc., Morningstar, Inc., Commonwealth Financial Network, Cetera Financial Group and Cambridge.
LPL Financial Holdings Inc
75 State St Fl 22
BOSTON MA 02109-1827