LPL Financial Launches Fee-Based Variable Annuity Platform; Enables Discretionary Management of Variable Annuity Assets

BOSTON, Feb. 17, 2011 /PRNewswire/ -- LPL Financial, the independent broker-dealer and wholly owned subsidiary of LPL Investment Holdings Inc. (Nasdaq: LPLA), today announced the launch of its Fee-Based Variable Annuity (FBVA) Platform.

Through the new FBVA Platform, LPL Financial advisors will be able to manage their variable annuity assets within a fee-based relationship and on a discretionary basis, thereby allowing them to deliver active portfolio management efficiently alongside the valued protection features that these products offer.  Investors will also benefit from a more streamlined pricing structure given the removal of bundled commissions and still maintain the consistency of the fee-based  relationship with the financial advisor across products within the same account.

Through this platform, purchases of fee-based variable annuities will be integrated in the existing LPL Financial process for opening accounts for investors, and holdings will be viewable through all advisor-facing technologies, including BranchNet, the company's proprietary, web-based technology platform that allows advisors to manage all critical aspects of their business.

LPL Financial makes available on the FBVA Platform fee-based variable annuity products from the following providers:

• Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York

• AXA Equitable Life Insurance Company

• The Lincoln National Life Insurance Company, and Lincoln Life & Annuity Company of New York

• Prudential Annuities companies

• Sun Life Financial

John Moninger, executive vice president of Advisory and Brokerage Solutions at LPL Financial, said, "The launch of our new Fee-Based Variable Annuity Platform reflects both increased demand from financial advisors, as well as the increasing need among consumers for more protected sources of retirement income delivered with greater choices and flexibility with respect to pricing structures.  We believe this new platform will change the shape of the annuity landscape, as it appeals to a growing population of advisors and clients who value the protection and lifetime income features but are also looking to actively manage these products from an investment standpoint.  

"We are delighted to partner with the leading providers in this space to offer a broad-based set of product strategies that are fully integrated within our technology and service platform.  We believe this platform enhances the choice and flexibility that our financial advisors have in serving clients with protected income needs, while providing discretion, transparency and consistency in how these clients are served."

Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk and possible loss of principal. Variable annuities contain both investment and insurance components, and have fees and charges, including mortality and expense, administrative and advisory fees. Optional features are available for an additional charge and are based on the financial strength of the insurer. The annuity's value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty. Withdrawals will reduce the death benefit and cash surrender value.

Consider the charges, risks, expenses and investment objectives carefully before purchasing a variable annuity. Contact a financial professional for a prospectus containing this and other information. Read it carefully before investing. 

About LPL Financial

LPL Financial, a wholly owned subsidiary of LPL Investment Holdings Inc., is an independent broker-dealer. LPL Financial and its affiliates offer proprietary technology, comprehensive clearing and compliance services, practice management programs and training, and independent research to over 12,400 independent financial advisors and financial advisors at financial institutions. Additionally, LPL Financial supports approximately 4,000 financial advisors who are affiliated and licensed with insurance companies with customized clearing, advisory platforms and technology solutions. LPL Financial and its affiliates have over 2,500 employees with employees and offices in Boston, Charlotte, and San Diego. For more information, please visit www.lpl.com.

Securities and advisory service offered through LPL Financial, a Registered Investment Adviser, Member FINRA/SIPC

About Allianz Life

Allianz Life Insurance Company of North America has been keeping its promises since 1896.  Today, it carries on that tradition, helping Americans achieve their retirement income goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with nearly 155,000 employees worldwide. Based on its revenue, Allianz SE is the 20th largest company in the world (Fortune Global 500, August 2010).

About AXA Equitable

In business since 1859, AXA Equitable Life Insurance Company (NY, NY) is a leading financial protection company and one of the nation's premier providers of life insurance and annuity products. The company's products and services are distributed to the financial services market through its wholesale distribution channel, AXA Distributors, LLC. AXA Equitable, a subsidiary of AXA Financial, Inc., is part of the global AXA Group, a worldwide leader in financial protection strategies and wealth management. "AXA Group" refers to AXA, a French holding company for an international group of insurance and financial services companies together with its direct and indirect consolidated subsidiaries. For more information, visit www.axa-equitable.com.

About Lincoln Financial

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $157 billion as of December 31, 2010. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.

About Prudential Financial

Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential's diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudential's iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century.  For more information, please visit  http://www.news.prudential.com/.

About Sun Life Financial

Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. In the United States and elsewhere, insurance products are offered by members of the Sun Life Financial group that are insurance companies. Sun Life Financial Inc., the holding company for the Sun Life Financial group of companies, is a public company. It is not an insurance company and does not offer insurance products for sale in the United States or elsewhere, and does not guarantee the obligations of its insurance company subsidiaries. Product offerings may not be available in all states and may vary depending on state laws and regulations. As of September 30, 2010, the Sun Life Financial group of companies had total assets under management of $442 billion. For more information please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

LPLA-C

SOURCE LPL Financial