At a time when few paid attention to the concept of financial planning, Private Ledger founder Bob Ritzman sought to offer a large group of mutual funds and securities to advisors—without pushing a particular product. And when Todd Robinson purchased Linsco in 1985, he was anticipating the growing desire for advisors to run their own independent practices—which proved true during the aftermath of the stock market crash in October 1987.
It was in the midst of this rapidly changing industry environment that LPL was formed. The entrepreneurial vision of Linsco and Private Ledger fused to form a guiding principle—supporting the best interests of its advisors and their clients.
More than 30 years later, LPL has become a Fortune 500 company and launched a new brand, yet this guiding principle remains—it’s simply expanded far beyond the investment services offered. Alongside the constant pace of change in the financial services industry and the world around us, LPL has evolved its technology, operations, risk management, and business consulting—while continuing to innovate its investment management services and platforms.
One of the distinguishing characteristics of our business model is our ability to consistently generate significant free cash flow. LPL does not provide investment banking or other alternative financial services.
We do not engage in market-making activities, nor do we engage in speculative trading for our own account. Our trading activities are focused solely on facilitating trades for the clients of our financial advisors.
In addition, we have no direct exposure to mortgage-related investments or securities, nor do we provide loans to hedge funds or other speculators, which lowers our credit risk.
What LPL does provide is technology, brokerage, and investment advisory services through business relationships with independent financial advisors, registered investment advisors (RIAs), and financial institutions and their financial representatives, whom we refer to collectively as our “clients.”
LPL does not offer proprietary investment products or engage in investment banking activities; this means advisors affiliated with LPL are not pressured or influenced by LPL to sell its products. Thousands of financial advisors nationwide are able to rely on the firm’s tools and resources to help them provide financial guidance and recommendations to help meet their clients’ needs.
For more information about LPL Financial, visit www.lpl.com.
