This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

LPL Financial Quickly Reaches $50 Billion Milestone For RIA Custody Business

Stocks in this article: LPLA

SAN DIEGO, June 19, 2013 (GLOBE NEWSWIRE) -- LPL Financial LLC, the nation's largest independent broker-dealer,* a leading RIA custodian and a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq:LPLA), today announced the firm has reached $50 billion in total RIA assets under custody, doubling its total as of the end of May 2012.

RIA is a commonly used acronym for "Registered Investment Advisor." RIA firms traditionally provide investment counsel and portfolio management services and generate fee income based on the amount of assets supervised.

"The $50 billion milestone caps five years of remarkable growth for our RIA custody business," explained Derek Bruton, managing director for LPL Financial. "We made a calculated decision to focus on this area back in 2008, based on the anticipated success of the then-new hybrid RIA model, which enables both fee and commission-based revenue opportunities for advisors who operate under their own RIA firm. Our recruitment efforts have been wildly successful, as the number of RIA firms on our platform, and their ability to attract assets, has exploded. We have become the destination of choice for the most successful and sophisticated RIA firms in the industry."

Beyond the growth of total assets under custody, key indicators of the platform's ongoing growth and success include:

  • The LPL Financial RIA custodial platform has grown organically since its initial launch in late 2008 to become one of the top RIA custodians in the industry according to Cerulli Associates, RIA Service Agent Survey 4Q 2012.  
  • RIA firms on the LPL Financial RIA custodial platform enjoy the highest average assets under custody at $214 million per RIA firm, compared to the top five largest custodians at $136 million in AUC per firm, as validated by Cerulli Associates, RIA Service Agent Survey 4Q 2012.  
  • Successful recent launch of the only fully integrated trading and rebalancing system in the custodial space, available to all advisors on the platform, which enables RIA firms to move seamlessly from model management through trading in one consolidated platform.

Ben Marks, president and chief investment officer of Marks Group Wealth Management, a Greater Minneapolis-based independent RIA firm that oversees approximately $500 million in assets, said, "As the first significant wirehouse breakaway team to become a client on the RIA custodial platform, we congratulate LPL Financial on the achievement of this major milestone.  We are delighted to be part of the platform's continued success story. While the vast majority of our business is fee-based, we find the dual registration to be convenient and seamless for our clients whenever they need to undertake a brokerage transaction."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs