LPL Financial
Encyclopedia
LPL Financial is the largest organization of independent financial advisors in the United States
. LPL Financial 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 more than 12,790 in 2011. LPL Financial has headquarters in Boston
, Charlotte
, and San Diego. Approximately 2,700 employees support financial advisors; financial institutions; and technology, custody, and clearing service subscribers with enabling technology, comprehensive clearing and compliance services, practice management programs and training, and independent research.
LPL Financial advisors help clients meet investment goals with 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
.
In 2005, private equity firms Hellman & Friedman
and Texas Pacific Group took a 60% stake in the firm.
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 United States.
In June 2007, LPL Financial finalized its acquisition of several broker/dealers under the Pacific Select Group (a.k.a. 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 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.
In September 2007, LPL Financial and Sun Life Financial announced a definitive agreement under which an affiliate of LPL Financial acquired Independent Financial Marketing Group, Inc. (IFMG), from Sun Life Financial. Sun Life Financial is a leading international financial services organization. The LPL Financial Institution Services business unit, which manages the IFMG business, is the nation’s top provider of investment and insurance services to banks and credit unions. The deal closed in November 2007.
On January 1, 2008, Linsco/Private Ledger Corp. (LPL Financial Services) changed its brand name to “LPL Financial.”
On November 18, 2010, LPL Investment Holdings Inc., the parent company of LPL Financial, become a publicly traded company on the NASDAQ Stock Market under ticker symbol LPLA.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. LPL Financial 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 more than 12,790 in 2011. LPL Financial has headquarters in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, Charlotte
CHARLOTTE
- CHARLOTTE :CHARLOTTE is an American blues-based hard rock band that formed in Los Angeles, California in 1986. Currently, they are signed to indie label, Eonian Records, under which they released their debut cd, Medusa Groove, in 2010. Notable Charlotte songs include 'Siren', 'Little Devils',...
, and San Diego. Approximately 2,700 employees support financial advisors; financial institutions; and technology, custody, and clearing service subscribers with enabling technology, comprehensive clearing and compliance services, practice management programs and training, and independent research.
LPL Financial advisors help clients meet investment goals with a number of financial services, including equities, bonds
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
, mutual funds, annuities
Annuity (US financial products)
In the United States an annuity contract is created when an insured party, usually an individual, pays a life insurance company a single premium that will later be distributed back to the insured party over time...
, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, 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
Conflicts of Interest
"Conflicts of Interest" is an episode from the fourth season of the science fiction television series Babylon 5.-Arc significance:* Garibaldi begins to work for William Edgars. In the process Garibaldi is reintroduced to his ex-girlfriend, Lise, who is currently married to Edgars.* The "Voice of...
.
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 the LPL Financial network.In 2005, private equity firms Hellman & Friedman
Hellman & Friedman
Hellman & Friedman is a private equity firm, founded in 1984 by Warren Hellman and Tully Friedman, that makes investments primarily through leveraged buyouts and minority growth capital investments....
and Texas Pacific Group took a 60% stake in the firm.
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 United States.
In June 2007, LPL Financial finalized its acquisition of several broker/dealers under the Pacific Select Group (a.k.a. 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 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.
In September 2007, LPL Financial and Sun Life Financial announced a definitive agreement under which an affiliate of LPL Financial acquired Independent Financial Marketing Group, Inc. (IFMG), from Sun Life Financial. Sun Life Financial is a leading international financial services organization. The LPL Financial Institution Services business unit, which manages the IFMG business, is the nation’s top provider of investment and insurance services to banks and credit unions. The deal closed in November 2007.
On January 1, 2008, Linsco/Private Ledger Corp. (LPL Financial Services) changed its brand name to “LPL Financial.”
On November 18, 2010, LPL Investment Holdings Inc., the parent company of LPL Financial, become a publicly traded company on the NASDAQ Stock Market under ticker symbol LPLA.
Key facts
Key facts regarding LPL Financial include the following:- 4.19 million funded accounts
- 12,799 financial advisors supported
- Approximately 4,000 technology, custody, & clearing service subscribers
- Approximately 730 financial institution partners
- $316.4 billion in advisory and brokerage assets