LPL Closes Acquisition of Financial Resources Group

Last Edited by: LPL Financial

Last Updated: February 01, 2023

Financial Resources Group press release image

SAN DIEGO – February 1, 2023 – LPL Financial Holdings Inc. (NASDAQ: LPLA) (“LPL Financial” or “LPL”) today announced the closing of its acquisition of Financial Resources Group Investment Services (“FRGIS”), an LPL branch office supporting financial institutions and advisors, headquartered in Fort Mill, South Carolina. FRGIS comprises approximately 800 advisors and 85 financial institutions nationwide, serving approximately $40 billion of advisory and brokerage assets. FRGIS will continue to operate independently within LPL, retaining its brand and leadership team.

“We are thrilled to see our long partnership with LPL strengthen in this way,” said Bruce Miller, partner and CEO of FRGIS. “We intend to fully leverage LPL’s support to continue to delight our existing clients with unmatched service and to grow the business further by attracting new ones.”

“This is the beginning of a new chapter with a long-standing, esteemed partner and LPL advocate, FRGIS,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “We are extremely pleased to deepen our partnership with FRGIS, which is a key foundational piece to our expansion in several strategic growth areas including community-based financial institutions, employee advisors and independent advisor offices.”

FRGIS, founded in 2010, is an industry leader of managed programs for banks and credit unions and provides a strategic complement to LPL’s existing enterprise offering. As an existing LPL client, FRGIS assets are already on LPL’s custodial platform.

About LPL Financial

LPL Financial (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve*, supporting more than 21,000 financial advisors, including advisors at approximately 1,100 institution-based investment programs and at approximately 500 registered investment advisor (“RIA”) firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

*Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (Based on total revenues, Financial Planning magazine 1996-2022); among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors. (2021-2022 Kehrer Bielan Research & Consulting Annual TPM Report). Fortune 500 as of June 2021.

LPL and its affiliated companies provide financial services only from the United States.

Securities and advisory services offered through LPL Financial LLC, a registered broker-dealer and investment advisor. Member FINRA/SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial LLC.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

About Financial Resources Group Investment Services

Founded in May 2010 on a “commitment to serve,” FRGIS’s vision was driven by a team of professionals with the common goal of assisting financial professionals and financial institutions in pursuing superior results. FRGIS moved to Fort Mill, South Carolina in 2015.  In total, FRGIS supports approximately 1,000 financial professionals in independent offices and financial institutions throughout the United States and serves over $40 billion in client assets.  FRGIS is also an LPL Office of Supervisory Jurisdiction.

Forward-Looking Statements

This press release includes statements regarding LPL Financial Holdings Inc. (together with its subsidiaries, including LPL Financial LLC, the “Company” or “LPL Financial”) and its potential growth, business strategy and plans, including the expected benefits of LPL Financial’s acquisition of FRGIS. These and other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. They reflect the Company’s plans, estimates and expectations as of February 1, 2023. Forward-looking statements are not guarantees that the future results, plans, intentions or expectations expressed or implied by the Company will be achieved.

Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause levels of assets serviced, actual financial or operating results, levels of activity or the timing of events to be materially different than those expressed or implied by forward-looking statements. In particular, the Company can provide no assurance that the benefits that are expected to accrue to LPL Financial, FRGIS and their respective advisors and stockholders as a result of the transactions described herein will materialize. Important factors that could cause or contribute to such differences include: disruptions to the parties’ businesses as a result of the announcement of the transactions; the inability by the Company to sustain revenue and earnings growth or to fully realize revenue or expense synergies or the other expected benefits of the transactions; disruptions of the Company’s or FRGIS’s businesses due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with their respective financial advisors and clients, employees, other business partners or governmental entities; the inability to implement onboarding plans and other consequences associated with acquisitions; unforeseen liabilities arising from the acquisition of FRGIS’s affiliates; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; effects of competition in the financial services industry; and the other factors set forth in the Company's 2021 Annual Report on Form 10-K and any subsequent filings with the Securities and Exchange Commission. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, and you should not rely on those statements as representing the Company's views as of any date subsequent to the date of this press release.