LPL Financial Closes Acquisition of Boenning & Scattergood

SAN DIEGO – February 1, 2023 – LPL Financial LLC (“LPL”) today announced the closing of its acquisition of the Private Client Group business of Boenning & Scattergood, a broker/dealer and registered investment adviser (RIA) headquartered in West Conshohocken, Pa. The 108-year-old business will operate under LPL’s Linsco employee advisor affiliation model, which allows the firm to retain its brand and operations, while benefitting from LPL’s integrated advisory and brokerage platform. As a result of the transaction, approximately $4 billion of client assets are expected to onboard to LPL’s custodial platform.

“Providing exceptional service is the core of who we are as a firm, and we have had great success doing that; however, to continue building our firm in a relevant and sustainable way, we needed a partner that would reinforce our commitment to service with industry-leading technology,” said Harold Scattergood Jr., chairman and CEO of Boenning & Scattergood. “LPL’s commitment to continuously invest in its platform and operational resources will allow us to further differentiate the experience we offer to our clients, so we can continue to build our firm’s legacy.”

“This is an exciting day for us, and we are proud to welcome the distinguished Boenning & Scattergood team to the LPL family,” said Rich Steinmeier, LPL Financial managing director and divisional president, Business Development. “Boenning & Scattergood has a long history of helping its clients build their financial legacies. That aligns perfectly with our goal to provide the technology and support our advisors need to deliver the best client experience possible.”

The acquisition of Boenning & Scattergood’s Private Client Group marks an important expansion of LPL’s Linsco employee advisor affiliation model, which began in 2019 with the acquisition of Allen & Company. The transaction was structured as an asset purchase. Under the structure of the Linsco model, LPL will onboard Boenning & Scattergood advisors and certain staff as employees.

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, a registered 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.

Forward-Looking Statements

Statements in this press release regarding LPL’s and Boenning & Scattergood future operating results, growth and plans, including potential future levels of assets serviced, the onboarding of advisors, staff and assets, or any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the historical performance of LPL and Boenning & Scattergood and LPL’s plans, estimates and expectations as of February 1, 2023. Forward-looking statements are not guarantees that the future levels of assets serviced, results, plans, intentions or expectations expressed or implied by LPL 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, LPL can provide no assurance that the assets reported as serviced by Boenning & Scattergood financial advisors will translate into assets serviced at LPL, or that Boenning & Scattergood financial advisors will join LPL. Important factors that could cause or contribute to such differences include: difficulties or delays in onboarding Boenning & Scattergood financial advisors, staff or clients, which could negatively affect LPL’s ability to realize revenue or expense synergies or other expected benefits of the transaction; disruptions of LPL’s business that could make it more difficult to maintain relationships with its financial advisors and their clients; the choice by clients of Boenning & Scattergood advisors not to open brokerage and/or advisory accounts at LPL; 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, including competitors’ success in recruiting Boenning & Scattergood advisors and their clients; and the other factors set forth in Part I, “Item 1A. Risk Factors” in LPL’s 2021 Annual Report on Form 10-K and any subsequent SEC filing. Except as required by law, LPL specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if its estimates change, and you should not rely on those statements as representing LPL’s views as of any date subsequent to February 1, 2023.