Businessweek

LPL Financial Holdings Inc. operates as a broker-dealer for registered investment advisors (RIAs), and an independent consultant to retirement plans. The company provides an integrated platform of brokerage and investment advisory services to approximately 13,300 independent financial advisors and financial advisors at approximately 700 financial institutions (advisors) throughout the United States. The company also supports approximately 4,500 financial advisors who are affiliated and licensed with insurance companies through customized clearing services, advisory platforms and technology solutions. The company supports a diverse client base through its subsidiary companies. LPL Financial LLC (LPL Financial) is a clearing broker-dealer and an investment advisor that principally transacts business as an agent for its advisors on behalf of their clients through an array of financial products and services. Fortigent, LLC (Fortigent) is a provider of solutions and consulting services to RIAs, banks and trust companies that serve high-net-worth clients. The Private Trust Company, N.A. (PTC) manages trusts for high-net worth-clients in all 50 states. The company’s subsidiary, NestWise LLC (NestWise), supports the recruitment and development of new-to-the-industry financial advisors focused on serving the mass market under the fee-based, independent model. Products and Solutions The company provides its advisors open architecture access to a range of commission, fee-based, cash and money market products and services. The company’s product due diligence group conducts extensive diligence on substantially all of its product offerings, including annuities, mutual funds, exchange-traded funds, alternative investments and real estate investment trusts. The company’s platform provides access to approximately 8,900 financial products, manufactured by 690 product sponsors. The company enters into arrangements with these product sponsors pursuant to the sponsor’s standard distribution agreement. The sales and administration of these products are facilitated through BranchNet and its Resource Center, which allow its advisors to access client accounts, product information, asset allocation models, investment recommendations, and economic insight as well as to perform trade execution. Commission-Based Products The company’s brokerage offerings include variable and fixed annuities, mutual funds, general securities, alternative investments, retirement and 529 education savings plans, fixed income and insurance. The company’s insurance offering is provided through LPLIA, a brokerage general agency which provides personalized advance case design, point-of-sale service and product support for a range of life, disability and long-term care products. Fee-Based Advisory Platforms and Support LPL Financial has five fee-based advisory platforms that provide centrally managed or customized solutions from which advisors can choose to meet the investment needs of their mass affluent and high-net-worth clients. The company’s fee-based platforms provide access to no-load/load-waived mutual funds, exchange-traded funds, stocks, bonds, conservative option strategies, unit investment trusts and no-load, institutional money managers and multi-manager variable annuities. Cash Sweep Programs The company assists its advisors in managing their clients’ cash balances through two primary cash sweep programs depending on account type: a money market sweep vehicle involving money market fund providers and an insured bank deposit sweep vehicle. The company’s insured bank deposit sweep vehicle allocates client cash balances across multiple non-affiliated banks to provide advisors with up to $1.5 million ($3.0 million joint) of insurance through the Federal Deposit Insurance Corporation (FDIC). Retirement Services The company offers a retirement solution that is fee-based and allows qualified advisors to provide consultation and advice to plan sponsors using its corporate RIA. The company offers its Individual Retirement Account (IRA) rollover desk, furnishing its advisors with the ability to service IRA rollovers in a compliant manner.