For many months, the United States economy has been struggling with a credit crisis, market volatility, and unprecedented events on Wall Street, which have left many investors understandably concerned and unsure about how they should proceed when investing for the future. In such times, the guidance of a trusted, independent financial advisor is more important than ever.

Today, thousands of LPL Financial advisors are guiding their clients in making crucial decisions about their financial futures. LPL Financial understands the critical role that financial advisors fulfill in helping their clients prepare for and respond to challenging times. And, our responsibility in safeguarding the assets that our advisors help you to manage is essential to us. That’s why we are so committed to maintaining a sound and prudent business model.

LPL Financial recognizes that investors need to feel good about the financial strength of the firms that guide them in making investment choices. Therefore, I would like to remind you how our firm is different. LPL Financial is not an investment bank. We do not provide loans to hedge funds or other speculators. Unlike other types of brokerage firms, LPL Financial does not maintain an inventory of investments, which means that our liquidity does not decline with the decrease of securities’ values.

Because LPL Financial does not engage in these practices, our business withstands shocks to the markets very well. We are a technology and service partner to advisors and financial institutions as opposed to a traditional wirehouse business model that takes on additional risks.  In addition to closely guarding our own financial strength, our enterprise risk management department routinely reviews our counterparty risk, as well as those with whom LPL Financial does business, to limit exposure to risk.

Just as important as our sound business model are our resources. Currently, there are almost 3,000 experienced market professionals behind LPL Financial advisors. With a 40-year tradition of offering independent financial advice, the personal service experience we provide our financial advisors helps them to deliver individualized guidance to clients. The strength of these relationships, as much as the strength of our firm, is what sets LPL Financial professionals apart and enables millions of their clients to realize their most important financial goals and life dreams.

Sincerely,

Mark Casady
Chairman and CEO