LPL Financial Supports SEC Staff Report Recommendation for Uniform Fiduciary Standard

Jan 31, 2011, 09:15 ET from LPL Investment Holdings Inc.

BOSTON, Jan. 31, 2011 /PRNewswire/ -- LPL Financial – the leading independent broker-dealer and wholly owned subsidiary of LPL Investment Holdings Inc. (Nasdaq: LPLA) – today announced its support of the application of a uniform fiduciary standard for financial advisors, as recommended in the January 2011 U.S. Securities and Exchange Commission (SEC) Staff Study.

Mark Casady, chairman and CEO of LPL Financial, said, "As the leading provider of unbiased advice to mass-affluent Americans, we welcome the clarity that the January SEC Staff Report brings to the retail financial advice industry.  In particular, we agree with the report's recommendation for a uniform fiduciary standard, as we believe this is right for investors, financial advisors and the industry.  We are confident this would help drive greater consistency and evenhandedness in the supervision of the broker-dealer and advisory sides of our industry.  This would be positive for financial advisors and their clients, the vast majority of whom are neither cognizant of, nor concerned with, different definitions for the standard of care between financial advisor business models."

Mr. Casady continued, "With an overwhelming number of our over 12,000 financial advisors dually registered to work on both a fee and commission basis, we are very comfortable with the disclosure and regulatory structures for both sides of the industry. As a dually licensed firm, we can support any business model a financial advisor may choose through our broker-dealer, corporate RIA and Hybrid RIA custody services.   As such, we are confident that a uniform fiduciary standard is just a first step. We believe an important next step in promoting the best interest of consumers is the harmonization of the rules governing brokers and advisors.

"Significant work lies ahead, but we believe the study has made meaningful progress and we are committed to continuing to work with our industry peers, the SEC and Congress to reach a balanced result for advisory and brokerage practices."

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 12,000 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


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SOURCE LPL Investment Holdings Inc.