About LPL Financial

LPL Financial was founded with a pioneering vision: to help entrepreneurial financial advisors establish

successful businesses through which they could offer truly independent financial guidance and advice. Today

we provide an integrated platform of proprietary technology, brokerage, and investment advisory services to

over 13,300 financial advisors as the nation’s largest independent broker/dealer,* making us a leading

distributor of financial products in the United States. In addition, we support over 4,000 financial advisors

with customized clearing, advisory platform, and technology solutions.

Even as our firm has grown over the years, we remain singularly focused on helping financial advisors to

manage the complexity of their investment practices so they can better serve their clients in achieving

important financial goals. And, because we do not offer proprietary products, LPL Financial enables the

independent financial advisors, banks, and credit unions with whom we partner to offer their clients truly

objective, conflict-free advice. Our open-architecture platform provides our customers with access to

thousands of commission, fee-based, cash, and money market products manufactured by hundreds of third-

party product sponsors.

Our customers

For more than 20 years, the LPL Financial Commitment Creed has been central to our culture and reflects

our firm’s singular focus on serving the customer. Our 2,900 employees in Boston, Charlotte, and San Diego

come to work every day focused on living this commitment.

Though LPL Financial was originally established to serve the independent advisor, today we serve three

customer groups:

Independent Advisor Services supports more than 13,300 independent and registered investment advisors.

Institution Services supports financial advisors at approximately 700 regional and community banks and

credit unions.

Custom Clearing Services supports approximately 4,000 advisors affiliated and licensed with insurance

companies through a unique outsourcing arrangement.

We tailor our programs and services to the diverse needs of our customers, enabling them to remain focused

on understanding and meeting their clients’ needs.

* As reported in Financial Planning magazine 1996-2012, based on total revenues.

From the Chairman

This year marks my 11th anniversary with LPL Financial. While much has changed in our industry and our

world during my tenure, our company's mission and focus on helping our customers succeed have remained

constant. This sense of purpose and singular focus are the primary reasons that today we are the nation's

premier independent broker/dealer and a leader in our industry*.

What sets us apart

In the midst of an industry that has grown increasingly complex, LPL Financial has excelled with a relatively

simple business model. We invest in the people and tools that we know will help our more than 13,300

financial advisors and approximately 700 financial institutions serve their clients and grow their business

profitably. In addition, we provide technology and clearing support to more than 4,000 financial professionals

associated with other financial services companies.

Our customers—these financial advisors and institutions—are certainly a differentiator for us as well. More

than just financial professionals, LPL Financial customers are also friends, neighbors, civic leaders, and

volunteers in the cities and towns where they live and work. These relationships give them an uncommon

understanding of their clients' needs and goals. For LPL Financial customers, sharing in the hopes and

aspirations of their clients is a value that never changes.

Because of the importance of the work they do, a focus on our customer is central to our culture at LPL

Financial. And that culture begins with the 2,900+ LPL Financial employees who come to work each day

devoted to our customers' growth, passionate about their success, grateful for the opportunity to earn their

business, and proud to be their valued partner. By acting with integrity and choosing to do the right thing,

we are able to provide our customers with the services and support they need to meet the growing demand

for independent investment advice.

What we are here to do

The opportunity for our company and the financial advisors and institutions we support has never been

greater. The financial services industry, markets, and world are changing fast, while people are facing more

complex financial needs. Together, LPL Financial and our customers have a phenomenal opportunity to serve

those who need objective and personal guidance. It's an exciting and challenging time for our business, and

we share in our customers' mission to help their clients realize their dreams and aspirations.

Over the last several decades, we have demonstrated the ability to grow our business through all types of

market cycles. This financial strength and resiliency allows us to remain committed to enabling the delivery

of objective, conflict-free advice and to continuing the ongoing investments in our customers, employees,

and our business that will drive our mutual success and yours.

Sincerely,

Mark Casady

Chairman and CEO

LPL Financial

* As reported by Financial Planning magazine, June 1996-2012, based on total revenue.

Corporate Snapshot

Following are highlights of key financial performance metrics for LPL Financial Holdings Inc.  For complete

financial information, including recent SEC filings, visit the Investor Relations section of LPL.com

As of December 31, 2012

Advisory & Brokerage Assets ($ billions) $373.3

Advisory Assets ($ billions) $122.1 

 2012 Annual Net Revenue ($ millions) $3,661.1 

Financial Advisors 13,352

Employees  2,917

Funded Accounts (millions) 4.3

Financial Institution Partners 701

Excess Net Capital, LPL Financial LLC ($ millions) $51.1

Industry ranking by number of advisors* 4

* Based on publicly disclosed information as of December 31, 2012

History

LPL Financial was formed in 1989 through the merger of two small brokerage firms, Linsco and Private

Ledger, both established in 1968. By merging these two companies, the founders of LPL Financial sought to

create a trusted alternative to Wall Street firms, one in which financial advisors could build highly

competitive businesses while always doing what is right for their clients. Today, we are the largest

independent broker/dealer in the country* supporting approximately 17,000 financial professionals.

In 2005, LPL Financial sold a 60% ownership stake to two private equity partners, Hellman & Friedman LLC

and Texas Pacific Group, both strongly committed to maintaining the independence of the firm. In November

2010, the parent company of LPL Financial, LPL Financial Holdings Inc., first became publicly traded on

NASDAQ under symbol LPLA.

As we continue to grow and look to the future, LPL Financial is committed to remaining a trusted and

unbiased resource for our advisors and their clients. The financial services industry, markets, and world are

changing fast, while people are living longer and facing more complex financial needs. At the same time,

investors are increasingly seeking to partner with advisors who offer unbiased guidance to help them face

today’s financial planning challenges. These factors mean that providing Americans with independent

investment advice has never been more important than it is today.

Financial advisors and institutions need a partner that can help them meet the evolving needs of their

clients. As a market leader, LPL Financial is well positioned to enable our customers to help their clients do

just that.

* As reported in Financial Planning magazine 1996-2012, based on total revenues

In the Community

LPL Financial is committed to improving lives and bettering communities. Through the LPL Financial

Charitable Foundation we are an enabling partner to organizations that help individuals achieve their

aspirations in life. Whether giving young people a strong start or supporting adults who are starting over, we

create partnerships through volunteer and financial support that enhance access to educational, career, and

financial literacy resources, fostering economic empowerment for at-risk individuals and families in the

communities where we work.

Education to Empower Youth: Education is perhaps the most critical factor in empowering youth to set

and achieve goals. Through strong partnerships with nonprofit organizations helping youth to stay and excel

in school, as well as through the efforts of our employees to mentor and offer inspiration and guidance, LPL

Financial helps young people succeed as students and in life.

Career Skill Cultivation: For adults, economic empowerment begins with the ability to obtain and sustain

employment. For individuals with barriers to employment or who are lacking the skills to compete in today's

job market, coaching and training in basic career and job-search skills can be the key to reaching their

personal potential. LPL Financial is proud to support programs that give adults a hand-up in achieving a

better life for themselves and their families

Fostering Financial Literacy: As a leader in the financial services industry, LPL Financial believes in the

simple principle that solid financial understanding leads to enhanced well-being and an improved overall

quality of life. We support programs that help individuals manage their personal financial resources and

enhance their familiarity and comfort with fundamental skills such as budgeting and financial planning.

Who We Serve

LPL Financial offers an integrated platform of proprietary technology, brokerage, insurance, and investment

advisor services to a variety of customers. We tailor our programs and services to the needs of our distinct

customer groups through three business units.

Independent Advisor Services assists entrepreneurial financial advisors who are working to create and

manage their own successful practice. To help advisors grow their businesses, LPL Financial provides

business consulting, business development, and marketing support as well as in-depth practice management

programs and training.

Institution Services supports advisors and program managers at community and regional banks and credit

unions by enabling them to offer their clients a wider array of investment, advisory, and insurance products

than would be possible on their own.

Custom Clearing Services supports broker/dealers at leading financial services companies.

Our Subsidiary Companies

In addition, our Rockville, Md-based subsidiary, Fortigent, provides high-net-worth solutions and consulting

services to RIAs, banks, and trust companies, while The Private Trust Company, our affiliate firm based in

Cleveland, manages trusts and family assets for high-net-worth clients in all 50 states. Our Matawan, N.J.-

based affiliate, Concord Capital Partners, helps trust companies automate the business practices of their

internal investment management activities. Our newest subsidiary, NestWise, is designed to support the

recruitment and development of new-to-the-industry financial advisors dedicated to serving the mass market

under the fee-based, independent model.

Whether supporting a financial advisor, a program manager at a financial institution, or a broker/dealer using

our customized clearing services, LPL Financial enables our customers to create and grow highly profitable

businesses by providing them with services and tools to meet the needs of their clients.

Independent Advisor Services

LPL Financial Independent Advisor Services is a powerful partner for entrepreneurial financial advisors

seeking to create their own successful businesses. Since our inception 40 years ago, helping financial

advisors establish competitive, independent practices has been at the heart of our mission.

Our successful financial advisors share our passion for providing the quality financial advice we believe every

client deserves, and they have helped LPL Financial grow to be the nation’s largest independent

broker/dealer.*  LPL Financial is focused on providing our advisors with services, tools, resources, and

training to help them manage the complexities of running their own practices.  In turn, our advisors are able

to focus on the needs and goals of their clients rather than logistics. We are 100% committed to the success

of the financial advisors we serve.

Our open product architecture and innovative fee-based programs, coupled with our research, provides our

advisors with the tools and flexibility they need to develop investment programs best suited for their clients.

To learn more about LPL Financial Independent Advisor Services, visit joinlpl.com, our dedicated Web site for

financial advisors.

Helping advisors succeed

At joinlpl.com, you’ll find in-depth information about how we support financial advisors. Whether you’re a

Registered Investment Advisor, a top-producing advisor, or just starting to build a practice, LPL Financial

offers the support you need:

State-of-the-art technology — Streamline daily investment operations, offer customized presentations,

and simplify portfolio management.  Read more on joinlpl.com.

Objective research — Research individual securities, mutual funds, and asset managers with leading

independent research, accessed through easy-to-use online tools and resources.  Read more on joinlpl.com.

Investment choice and flexibility — Choose from a wide range of separate account and wrap fee

structures designed to meet the needs of almost every client.   Read more on joinlpl.com.

Comprehensive marketing materials — Build a successful business with both print and online marketing

materials customized to your brand and specific marketing objectives.   Read more on joinlpl.com.

Training and support — Rely on LPL Financial for the support you need, from your daily investment

operations to compliance, training, education, and beyond.   Read more on joinlpl.com.

Contact us to learn more, or visit joinlpl.com.

* As reported in Financial Planning magazine 1996-2012, based on total revenues.

Institution Services

LPL Financial Institution Services partners with approximately 685 financial institutions nationwide. This

experience enables us to fully understand our customers’ cultures, challenges, and opportunities. We

specialize in pairing our industry expertise with your institution’s unique strengths, creating a powerful

partnership that maximizes your potential to build, sustain, and enhance customer relationships. Through a

combination of high-tech solutions and high-touch service, Institution Services provides unbiased sales

support and proven program management tailored to the individual needs of each institution.

Because LPL Financial has no ownership interest from investment product vendors, the success of the

financial institution and its customers is always our first priority. Plus, with a flexible business model that

includes a range of optional services we are uniquely positioned to deliver customized solutions for each and

every financial institution.

Our focus is to help you streamline your daily investment operations with comprehensive sales and

administrative support. Whether it’s business consulting or program start-up for program managers,

unbiased product and sales support for financial advisors, or superior back-office resources, Institution

Services provides industry-leading solutions tailored to the needs of your institution:

Performance development — Establish goals and benchmarks for your financial institution-based

investment program. Read more on lplfis.com.

Transition services — Make a smooth transition to our investment platform with our experienced

team. Read more on lplfis.com.

Product management — Access a wide range of solutions for package products, insurance, and managed

money. Read more on lplfis.com.

Advanced sales support —Leverage our team of business consultants to help you maximize revenue and

customer satisfaction. Read more on lplfis.com.

Marketing — Customize marketing materials to suit the specific needs of your organization from our

extensive library of print on demand literature. Read more on lplfis.com.

Customer service — Receive the support you need to keep your program running efficiently while helping

your customers achieve their goals. Read more on lplfis.com. 

Technology — Access state-of-the-art technology that helps simplify and streamline your daily investment

operations. Read more on lplfis.com.

Compliance — Depend upon our experienced compliance officers and resources to help you stay abreast of

the latest regulatory developments and requirements. Read more on lplfis.com.

Contact us to learn more, or visit lplfis.com.

Custom Clearing Services

LPL Financial Custom Clearing Services enables you to take your broker/dealer business to the next level by

providing the tools and resources needed to fully outsource your clearing operations with confidence. With

our unique approach to clearing, Custom Clearing Services tailors solutions to the specific needs of the

broker/dealer organization and enables leading financial services companies to:

Increase financial advisor productivity

Enhance client recruiting and retention

Mitigate compliance risk

Minimize overhead expenses while increasing profit margins and revenue

As the largest independent broker/dealer in the nation*, LPL Financial has invaluable expertise in the

clearing, technology, compliance, and customer service functions and enables other broker/dealers to

outsource these critical activities so you can reduce complexity and focus on your business’s core activity—

helping clients.

 

The Custom Clearing Services Advantage

With LPL Financial Custom Clearing Services, you’ll benefit from a broad range of services and support. To

learn more, click on the links below.

Advisory program services — LPL Financial has long been recognized as a leader in fee-based asset

management, and we offer one of the industry’s broadest, non-proprietary fee-based investment platforms.

Our advisory programs provide both choice and objectivity for financial advisors and their clients.

Compliance risk management — Compliance and risk management are critical components of running a

successful broker/dealer. LPL Financial offers a robust, industry-leading platform of compliance technology

that provides the oversight and tools needed to stay ahead of the changing regulatory landscape.

Marketing and training — Our tools help financial advisors plan and implement time-efficient, cost-

effective marketing strategies, and we offer marketing materials that can be re-branded to your

broker/dealer. In addition, we provide training for headquarters and local office staff, branch managers, and

financial advisors to ensure a smooth transition to the LPL Financial platform.

Research — LPL Financial Research provides conflict-free, objective, timely, actionable investment research

and advice to help financial advisors make the best choices for their clients. Advisors can benefit from our

due diligence and analysis by saving time and using our research in building client portfolios.

Service Center — Our Service Center professionals are dedicated to providing timely, accurate, and

consistent support and addressing diverse customer inquiries about account transfers, direct business, new

accounts, retirement services, and more. And our rigorous service standards minimize your wait time.

Technology — Custom Clearing Services provides broker/dealers with direct access to superior tools and

support systems such as BranchNet, the Resource Center, Portfolio Review Tool, and Portfolio Manager.

Contact us to learn more.

 

Custom Clearing Services is a proud sponsor of the Financial Services Institute (FSI). Read more about FSI

on the organization's website.

 

*As reported by Financial Planning magazine 1996-2012, based on total revenue.

Working with an Advisor

With increasingly complex financial markets and longer life expectancies, working with an investment

professional is more important than ever. One of the most important decisions you can make is to seek the

advice of a trusted, qualified advisor. For this important partnership, you need a trained professional who

sees your total financial picture-someone who can help you define your life goals, establish the right financial

plan, provide strategies focused on your needs, and help you stay on track.

At LPL Financial, we understand the important role a financial advisor can play in managing your total

financial life. That's why we provide our financial advisors with the tools they need to help you meet your

goals. When you choose an advisor supported by the vast resources of LPL Financial, you can be confident

that your advisor will have access to independent research, state-of-the art technology, innovative

investment tools, and the exceptional support that allow your advisor to devote his or her full attention to

your needs and objectives.

Why Use an LPL Financial Advisor?

Over the past decade, financial advisors backed by LPL Financial have become a leading source of objective

advice for accumulating and managing personal wealth. As experienced financial professionals, these

advisors possess an average of 10 years of industry experience when they partner with our organization.

With thousands of LPL Financial advisors to choose from nationwide, you can identify and interview more

than one advisor in your region before choosing one with whom you feel most comfortable. While advisors

aligned with LPL Financial come from different backgrounds and offer different types of expertise, they all

have two things in common: they're backed by a market leader and they're 100% committed to helping you

achieve your long-term financial and life goals. This means that when you invest with an LPL Financial

advisor, you can benefit from:

Objective guidance and advice - With access to leading independent research, your LPL Financial advisor

can help you make informed, objective decisions.

Investment choice and flexibility - LPL Financial does not offer any proprietary products, so your advisor

can help you choose unbiased investment products and strategies from many of the nation's leading

investment managers.

Holistic approach to life planning - No matter where you are in life-just getting started or winding down a

successful career-you have goals and dreams. Your advisor engages you in an ongoing conversation about

your needs, goals, and objectives to create the life plan that's right for you.

Convenient account access - You can manage your account online anytime, day or night, from the

convenience of your own home or office. In addition, easy-to-read account statements keep you informed of

account activity and performance.

Passion for providing independent advice - LPL Financial advisors offer tailored strategies designed to

address the needs of your life goals and financial growth. Our advisors base their success upon helping their

clients by tapping into our vast resources to provide the objective advice you need.

An independent investment partner - Your LPL Financial advisor more than likely lives and works in your

community. And because your LPL Financial advisor cares as much about your personal satisfaction as the

performance of your portfolio, he or she serves as a true partner to help you live the life you desire.

Take the first step to starting a new partnership with an LPL Financial advisor today through our

convenient advisor-locator tool.

 

About LPL Financial Who We Serve Working with an Advisor

How We Support Your Advisor

Objective Guidance

Before You Invest

Prudent Investing with an LPL Financial Advisor

How We Are Regulated

Tools

Investor Relations Find an LPL Financial Advisor

Find an LPL Financial Advisor Learn more about Disclosure

How We Support Your Advisor

LPL Financial provides advisors with the tools, technology, and support they need to manage a successful

practice. Backed by our substantial resources, your LPL Financial advisor can focus on what he or she does

best—provide you with prudent financial guidance and advice.

LPL Financial offers your financial advisor:

Integrated technology — Our integrated, web-based technology platform allows customers to manage

critical aspects of their business while remaining highly efficient and responsive to their clients’ needs. Time-

consuming processes—such as account opening and management, document imaging, transaction

execution, and account rebalancing—are automated to improve efficiency and accuracy. With LPL Financial

focused on technology, advisors are able to focus on what is most important: growing their clients’ assets.

Independent research — Our Research team provides unbiased research on mutual funds, separate

accounts, annuities, alternative investments, equities, fixed-income securities, and more. With a focus on

performance, service, and transparency, our research team delivers timely perspectives on the ever-

changing economic marketplace, helping advisors to help their clients understand and adjust to the latest

developments.

Practice management programs and training — LPL Financial constantly seeks ways to help customers

increase their service to their clients. Our experience and leadership in our industry, as well as the size and

diversity of our customer base, give us the ability to benchmark the best practices of successful financial

advisors and financial institution-based investment programs. In addition, we are able to dedicate an

experienced and diverse set of professionals to work with customers, helping them to build and manage

their business and client relationships through one-on-one consulting and group training.

Comprehensive clearing and compliance services — LPL Financial custodies and clears the majority of

our customers’ transactions, providing an enhanced customer experience and expedited processing

capabilities—all backed by robust and responsive service center and operations organizations focused on

providing timely, accurate, and consistent support.

 

In addition, our 300-person Compliance team provides oversight of many diverse compliance and monitoring

requirements. We serve as a true business partner to our advisors, working closely with them and acting

proactively on their behalf so they can run a compliant practice. By seamlessly integrating compliance

functionality into our advisors’ practices, we enable many of their procedures to be fully automated. With LPL

Financial focusing on back-office service and support, advisors are able to focus on their clients’ future rather

than on logistics.

Objective Guidance

At LPL Financial, we provide all the tools advisors need to offer you objective advice, including exceptional

research and administrative support for tracking and monitoring account performance. We believe advisors

backed by LPL Financial have a greater understanding of the economy and markets, more time to evaluate

financial strategies, and greater access to comprehensive information. As a result, you can depend on your

LPL Financial advisor for objective financial advice.

Our advisors are able to offer their clients a broad array of financial products, including:

Mutual funds

Annuities and other tax-efficient investments

Domestic and international securities

Insurance

Fee-based asset management programs

Estate and financial planning

Trust services*

Group retirement plans

Exchange-traded funds (ETFs) and exchange-traded notes (ETNs)†

From these and other investment options, your LPL Financial advisor can construct individual investment

portfolios by using our unbiased research on the economy and a range of other investment-related topics.

Because we offer no proprietary investment products and have no investment banking operations, our

research is free from conflicts of interest. As a result, our financial advisors are able to make informed

recommendations based on objective research and your individual needs.

*LPL Financial representatives offer access to trust services through The Private Trust Company, N.A., an

affiliate of LPL Financial.

†INFORMATION REGARDING LEVERAGED AND INVERSE ETFs, ETNs, AND MUTUAL FUNDS (collectively

referred to as "Products") — Similar to any investment, these types of products have risks. These include the

general risks associated with investing in securities, potential tracking errors, and the possibility that

particular indexes may lag other market segments or active managers. Leveraged ETFs, ETNs, and mutual

funds are different from and can be riskier than traditional ETFs, ETNs, and mutual funds. Compounding of

the returns, in particular for leveraged products, can produce a significant divergence from the underlying

index over time, especially in volatile markets; therefore, these products should be actively monitored, as

frequently as daily, and may not be appropriate as an intermediate or long-term holding. Additionally, these

products may not be diversified and may be based on commodities or currencies. These products may have

higher expense ratios and be less tax efficient than more traditional ETFs, ETNs, and mutual funds.

Before You Invest

Generally, every firm requires a client to sign a new account agreement before the client invests. You should

carefully review the information contained in this document because it may affect your legal rights regarding

your account. Ask to see any account documentation prepared for you by the sales representative. Do not

sign the new account agreement unless you thoroughly understand it and agree with the terms and

conditions it imposes on you; in addition, do not rely on verbal representations from a sales representative

that are not contained in the agreement. LPL Financial advisors will ask for information about your

investment objectives and personal financial situation, including your income, net worth, and investment

experience. It is important that you answer these questions honestly, because advisors will use this

information in making investment recommendations to you.

Completion of the new account agreement requires that you make three critical decisions:

1. Who will control decision making in your account?

You will control the investment decisions made in your account unless you decide to give discretionary

authority to the advisor to make investment decisions for you. At LPL Financial, discretionary authority within

an advisory account allows a third party to make investment decisions based on what they believe is best—

without consulting you about the price, the type of security, the amount, or when to buy or sell. Do not give

discretionary authority to anyone without seriously considering whether this arrangement is appropriate for

you.

2. How will you pay for your investment?

Most investors maintain a cash account that requires payment in full for each security purchase. An

alternative type of account is a margin account. Buying securities through a margin account means that you

can borrow money from the brokerage firm to buy securities; this arrangement requires that you pay interest

on that loan. You will be required to sign a margin agreement disclosing interest terms. If you purchase

securities on margin (by borrowing money from the brokerage firm), the firm has authority to immediately

sell any security in your account, without notice to you, to cover any shortfall resulting from a decline in the

value of your securities. If the value of your account is less than the amount of the outstanding loan—even

due to a one-day market drop—you are liable for the balance. This balance may be a substantial amount of

money even after your securities are sold. The margin account agreement generally provides that the

securities in your margin account may be lent out by the brokerage firm at any time, without notice or

compensation to you.

3. How much risk should you assume?

In a new account agreement, you must specify your overall investment objective in terms of risk. Be sure

that you understand the distinctions between the terms, and be certain that the risk level you choose

accurately reflects your investment goals. Read more about investment objectives.

This brings you to an important investment decision: never invest in a product you don’t fully understand.

You may wish to consult additional information sources such as business and financial publications;

information about the fundamentals of investing and basic financial terminology can be found at your local

library. You should also ask your advisor for the product prospectus, offering circular, or most recent annual

report, as well as the options disclosure document, if you are investing in options. Read these materials

carefully and, if you have questions, talk with your advisor before investing.

 

Nobody invests to lose money. However, investments always entail some degree of risk. Be aware that:

The higher the expected rate of return, the greater the risk. Depending on market developments, you could

lose some or all of your initial investment. 

Some investments cannot easily be sold or converted to cash. Check to see if there is a penalty or charge if

you must sell an investment quickly or before its maturity date.

Investments in securities issued by a company with little or no operating history or published information

may involve greater risk. 

Securities investments, including mutual funds, are not federally insured against a loss in market value. 

Securities you own may be subject to tender offers, mergers, reorganizations, or third-party actions that can

affect the value of your ownership interest. Pay careful attention to public announcements and information

sent to you about such transactions; they involve complex investment decisions. Be sure you fully

understand the terms of any offer to exchange or sell your shares before you act. In some cases, such as

partial or two-tier tender offers, failure to act can have detrimental effects on your investment. 

The past success of a particular investment is no guarantee of future performance.

Although capital markets are carefully regulated, market reaction to events and news are part of the normal

course of a trading day. Clients should be familiar with what may occur during periods in which markets are

more volatile. Read more about market volatility.

Prudent Investing with an LPL Financial Advisor

Providing a proper investment environment is a priority for LPL Financial. In addition to our efforts to help

safeguard your accounts, your own actions and awareness are also critical to keeping funds properly

invested. Following is some important information to keep in mind:

Payment for securities investments should always be made directly to "LPL Financial" or to a mutual fund,

annuity, or insurance company, or other LPL Financial product partner. View a list of many product

sponsors that partner with LPL Financial and their check payee information. If you are asked to

write a check to a product provider that does not appear on this list, please call 800-558-7567.

LPL Financial advisors are required to place securities investments through LPL Financial or directly with a

mutual fund, insurance company, or other product provider, like the ones in the list above. Do not make

checks payable directly to a financial advisor, the financial advisor's business name, or any business

controlled by the financial advisor. 

When dealing with a representative of LPL Financial, accept account payments from LPL Financial or

theproduct provider only. Payment from any other business names or the representative is not

appropriate. 

You should never borrow from or lend money to a representative of LPL Financial.

Always sign your own documents and never ask someone else to sign for you unless they can legally act for

you, e.g. via power of attorney.

Review your statements when you receive them. If you receive a summary statement from your financial

advisor, compare the statement numbers to your statements from each product provider or official LPL

Financial account statement.

With questions about these prudent investing practices or to report any suspicious activity on the part of

your financial advisor, please contact the LPL Financial compliance department at 800-558-7567.

For your reference, following are several sample communications from LPL Financial. Your account-related

communications from your LPL Financial advisor should resemble these documents:

Trade confirm

Sample Account Statement

Tax forms: Realized Gains and Losses Statement and Consolidated 1099

 

How We Are Regulated

LPL Financial is regulated by Federal, State, and self-regulatory agencies, including the following:

Financial Industry Regulatory Authority (FINRA)

Securities Exchange Commission (SEC)

Securities Investor Protection Corporation (SIPC)

Municipal Securities Rulemaking Board

Electronic Municipal Market Access

Tools

Understanding and evaluating where you stand today in terms of your finances is the first step in taking

action and developing a sound investment plan. Following are a few useful tools to help you get started and

to support you in working with a financial advisor and managing your finances.

Evaluate your financial goals – These financial calculators, which are available through the Financial

Industry Regulatory Authority (FINRA), can help you see where you stand. 

Royalty Tax Information – For your convenience, we have provided links to many royalty trust

investments to assist you with preparing your tax return and computing your income.

Evaluate Your Financial Goals

Evaluate your financial goals with these financial calculators available through the Financial Industry

Regulatory Authority (FINRA).

Savings Calculator

Retirement Calculator

Fund Analyzer

College Savings Calculator

Royalty Trust Information

A royalty trust is a type of corporation that is usually involved in the production of gas, oil, or minerals.

Generally, tax information for royalty trust investments is included on your 1099 consolidated reporting

statement; however, additional information containing depletion schedules, historical information, state

income tax deductions and credits, and state apportionments is furnished in a separate tax booklet and is

available on individual royalty trust websites. For your convenience, we have provided links to many of these

sites below to assist you with preparing your tax return and computing your income.

Because the IRS requires royalty trusts to furnish their tax booklets to investors by March 15, the information

for the 2011 tax year may not be available until that date.

Cross Timbers Royalty Trust

Dominion Resources Black Warrior Trust

Hugoton Royalty Trust

Permian Basin Royalty Trust

Sabine Royalty Trust

Williams Coal Seam Gas Royalty Trust

BP Prudhoe Bay Royalty Trust

Eastern American Natural Gas Trust

IShare Gold Trust

IShare Silver Trust

Marine Petroleum Trust

Mesa Offshore Trust

MV Oil Trust

Santa Fe Energy Trust

SPDR Gold Shares

TEL Offshore Trust

Whiting USA Trust I

L L & E Royalty Trust

Mesa Royalty Trust

Investor Relations

      

LPL Financial provides an integrated platform of proprietary technology, brokerage, and investment advisory

services to over 13,000 independent financial advisors and financial advisors at regional and community

banks and credit unions across the country. In addition, we support over 4,000 financial advisors with

customized clearing, advisory platform, and technology solutions.

We build shareholder value through our singular focus on providing financial advisors and institutions with

the front-, middle-, and back-office support they need to serve the large and growing market for independent

investment advice. Through a combination of integrated technology, comprehensive clearing and

compliance services, practice management programs and training, and independent research, LPL Financial

is an enabling partner to advisors and institutions, helping them to manage complexity in their practices so

they can focus on building and strengthening client relationships. As the largest independent brokerage firm

in the U.S., our scale enables us to continually reinvest in the resources, services, and support to attract and

retain advisors and approximately 685 financial institutions, while helping them to grow their own business.

Equally important, we offer financial advisors access to leading financial products from a broad universe of

product sponsors through our open architecture platform. Through our advisors, we are one of the largest

third-party distributors of financial products in the United States. Importantly, we have achieved this

distinction while remaining unencumbered by conflicts from product manufacturing, underwriting, or market

making.

Recent Releases

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Apr 15, 2013

LPL Financial Congratulates Honorees in Barron's List of America's Top 100 Financial Advisors for 2013

Events & Presentations

      

Featured Event

Apr 1–2, 2013 J.P. Morgan Non-Deal Roadshow 

Location: Minneapolis and Chicago

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Upcoming Event

Apr 25, 2013 

8:00 AM ET

LPL Financial Holdings First Quarter Earnings CallListen to webcast

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Archived Events

Mar 5, 2013 

9:40 AM ET

Citi 2013 US Financial Services ConferenceListen to webcast

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Feb 6, 2013 

8:00 AM ET

LPL Financial Holdings Fourth Quarter Earnings CallListen to webcast

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Dec 4, 2012 

2:10 PM ET

Goldman Sachs Financial Services ConferenceListen to webcast

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Nov 29, 2012 

8:45 AM ET

Keefe, Bruyette & Woods Ninth Annual Securities Brokerage and Market

Structure ConferenceListen to webcast

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Oct 31, 2012 

8:00 AM ET

LPL Investment Holdings Third Quarter Earnings CallListen to webcast

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Sep 25, 2012 Macquarie Research Non-Deal Roadshow 

Location: Boston, MA

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Jul 31, 2012 

8:00 AM ET

LPL Investment Holdings Second Quarter Earnings CallListen to webcast

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Jun 13, 2012 

8:00 AM ET

Morgan Stanley Financials ConferenceListen to webcast

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Jun 12, 2012 

11:10 AM ET

William Blair & Company Growth Stock ConferenceListen to webcast

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Jun 6, 2012 

2:20 PM ET

Bank of America Merrill Lynch Small and Mid Cap ConferenceListen to webcast

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Apr 30, 2012 

8:00 AM ET

LPL Financial Holdings First Quarter Earnings CallListen to webcast

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Mar 23, 2012 

8:10 AM ET

UBS Asset Gathering ConferenceListen to webcast

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Mar 7, 2012 

11:10 AM ET

Citi Financial Services ConferenceListen to webcast

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Dec 7, 2011 

9:30 AM UK

NASDAQ OMX 27th Investor ProgramListen to webcast

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Oct 26, 2011 

8:00 AM ET

LPL Financial Holdings Third Quarter Earnings CallListen to webcast

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Jul 27, 2011 

8:00 AM ET

LPL Financial Holdings Second Quarter Earnings CallListen to webcast

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Jun 15, 2011 William Blair Growth Stock ConferenceListen to webcast

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Jun 9, 2011 Sandler O'Neill Global Exchange & Brokerage ConferenceListen to webcast

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Apr 25, 2011 

5:00 PM ET

LPL Financial Holdings First Quarter Earnings CallListen to webcast

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Mar 9, 2011 

2:45 PM ET

Citi Financial Services ConferenceListen to webcast

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Feb 8, 2011 

8:30 AM ET

LPL Financial Holdings Earnings CallListen to webcast

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Feb 1, 2011 

8:45 AM ET

Morgan Stanley Financials ConferenceListen to webcast

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LPL FinancialFrom Wikipedia, the free encyclopedia

LPL Financial

Type Public

Traded as NASDAQ: LPLA

Industry Financial Services

Founded 1968

Headquarters 75 State Street

Boston, Massachusetts

Number of locations Over 4,900 business relationships

Key people Mark Casady, Chairman &CEO

Revenue  US$3.479 billion (2011)[1]

Employees 2,900

Parent LPL Financial Holdings Inc.

Website www.lpl.com

LPL Financial is the largest organization of independent financial advisors in the United States.[2] 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 13,100 in 2012. LPL Financial has headquarters in Boston, Charlotte,

and San Diego. Approximately 2,900[3] 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.[4]

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.[5]

Contents

  [hide] 

1     Timeline   

2     Statistics   

3     References   

4     External links   

[edit]Timeline

In 2003, LPL Financial acquired Private Trust Company, its affiliate firm based in Cleveland, which manages

trusts and family assets for high-net-worth clients in all 50 states.

In 2004, LPL Financial acquired the broker/dealer operations of the Phoenix Companies (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.[6]

In 2005, private equity firms Hellman & Friedman and Texas Pacific Group took a 60% stake in the firm.[7]

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.[7]

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.[8]

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.[9]

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.[10] The deal closed in November 2007.[citation needed]

On January 1, 2008, Linsco/Private Ledger Corp. (LPL Financial Services) changed its brand name to "LPL

Financial".[7]

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.[citation needed]

In 2011, LPL Financial acquired New Jersey-based Concord Capital Partners, which helps trust companies

automate the business practices of their internal investment management activities.

In January 2012, LPL Financial acquired Rockville-based Fortigent, which provides high-net-worth solutions

and consulting services to RIAs, banks, and trust companies.[11]

[edit]Statistics

Key facts regarding LPL Financial include the following:[1]

4.3 million funded accounts[3]

13,185 financial advisors supported[3]

Approximately 4,500 technology, custody, and clearing service subscribers[3]

Approximately 685 financial institution partners[3]

$353.0 billion in advisory and brokerage assets[3]

[edit]References

1. ^ a b LPL Financial website – Financials

2. ̂  Based on total revenue. "Total Revenue" (PDF). 12th Annual Independent Broker-Dealer Guide. Financial

Planning magazine. p. 29. Retrieved 4 August 2011.

3. ^ a b c d e f http://lplfinancial.lpl.com/about_lpl_financial/corporate_snapshot.htm

4. ̂  http://lplfinancial.lpl.com/

5. ̂  JoinLPL.com – LPL Financial Research

6. ̂  http://www.fa-mag.com/fa-news/2050-.html

7. ^ a b c http://lplfinancial.lpl.com/about_lpl_financial/history.htm

8. ̂  http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=32562022

9. ̂  <http://www.investmentnews.com/article/20080218/REG/259770311

10. ̂  Based on number of financial institutions, as reported in a 2010 Kenneth Kehrer study

11. ̂  http://www.forbes.com/sites/halahtouryalai/2012/01/03/lpl-expands-ria-presence-with-fortigent-acquisition/

[edit]External links

LPL Financial web site

LPL Financial recruiting web site