LPL Increases Its 2019 Technology Investment to $150 Million

Last Edited by: LPL Financial

Last Updated: May 22, 2019

LPL Financial increases 2019 technology investment to $150 million.

CHARLOTTE, N.C. – May 22, 2019 – LPL Financial LLC, a leading retail investment advisory firm and independent broker-dealer, today announced it has increased the amount of its forecast technology spend, allocating an additional $15 million to the $135 million already planned for 2019, furthering its ability to deliver new and enhanced capabilities to advisors.

“To keep up with the demands of the industry and investors, advisors increasingly need to leverage technology to increase efficiency, create scale and offer a digital service experience to meet investors’ demands,” said Burt White, LPL Financial managing director and chief investment officer. “We are uniquely positioned to be able to deploy capital and invest in our advisors’ business. And we believe that focusing that investment on technology capabilities and resources can bring a tremendous amount of value to advisors and their clients.”

LPL has repeatedly increased its annual investment in technology capabilities, with plans to be up nearly 50 percent in 2019 compared to 2017, advancing the firm’s ability to deliver an industry-leading technology platform that is integrated, streamlined, easy to use and adds value to the advisor and investor experience.

The firm is focused on enhancements to its technology capabilities, infrastructure and controls. Areas of focus, among others, include the continued evolution of its advisory platform to deliver capabilities and technology that serve the entire wealth management market; strengthening CilentWorks to deliver an industry-leading service experience that enables advisors to drive efficiency and scale into their practices; and building an end-to-end solution with ClientWorks Connected, organizing capabilities into integrated and flexible digital workflows to help advisors thrive.

About LPL Financial

LPL Financial is a leader in the retail financial advice market and the nation’s largest independent broker-dealer*. We serve independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.

*Based on total revenues, Financial Planning magazine June 1996-2018

Forward-Looking Statements

Statements in this press release regarding LPL’s future operating results, plans and priorities, including potential amounts and areas of focus of technology expenditures in 2019, future enhancements to LPL’s technology capabilities and infrastructure, and future benefits of technology investments, as well as 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 LPL’s historical performance and plans, estimates and expectations as of May 22, 2019. 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. Important factors that could cause or contribute to such differences include: changes in general economic and financial market conditions, including retail investor sentiment; changes in interest rates and fees payable by banks participating in LPL's cash sweep programs, LPL's strategy and success in managing cash sweep program fees; changes in the growth and profitability of LPL's fee-based business; fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue; effects of competition in the financial services industry and the success of LPL in attracting and retaining financial advisors and institutions; whether the retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company; the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations; the costs of settling and remediating issues related to regulatory matters or legal proceedings; expenditures on technology, including maintenance and enhancement of compliance and supervisory systems and governance, to meet industry and regulatory standards and consumer preferences; changes made to LPL’s services and pricing, and the effect that such changes may have on LPL’s gross profit streams and costs; execution of LPL's plans and its success in realizing the synergies, expense savings, service improvements, and/or efficiencies expected to result from its initiatives, acquisitions and programs; and the other factors set forth in Part I, “Item 1A. Risk Factors” in LPL’s 2018 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 May 22, 2019.