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LPL Financial Responsible Business Practices

September 24, 2018

LPL Financial

At LPL Financial, how we conduct business is as important as the business we conduct. It goes beyond abiding by laws and regulations. We continually strive for transparency and integrity in everything we do. We believe it’s the best way to serve the interests of all our stakeholders—and it’s good business.

Our work makes a difference. That is why we share a passion for doing it ethically and exceedingly well. Because we have a clear focus and we are empowered to deliver results, we see every day that we are creating something special together.

- Except from LPL Financial's "Our Values"

A Business Built on Ethics and Independence

LPL maintains a unique business model in the financial services industry. In contrast to some Wall Street institutions where financial advisors are employees of brokerage firms, LPL advisors operate independently. They can build the practices, programs or teams they’ve envisioned while doing what’s right for their clients.

Doing right by their clients is a key requirement for LPL advisors, because it’s a foundational belief at LPL that every investor deserves to achieve his or her vision for financial independence through a relationship with a trusted advisor. Part of earning that trust requires the delivery of independent, objective advice.

To help ensure that happens, LPL requires its advisors to sign a "Code of Ethics." It covers the disclosure of conflicts of interest, as well as compliance with securities laws, the protection of confidential client information, and more.

It helps that LPL doesn’t offer proprietary investment products or have investment banking operations. What we do provide our advisors with is objective advice from our team of expert analysts, strategists, economists, and investment specialists who deliver relevant, timely market and economic insights and thought leadership perspectives and strategies.

As a result, LPL advisors can make informed recommendations based on objective research, and select from a wide array of available products to address their clients’ financial goals.

Code of Conduct

Every day at LPL, in every business unit and in every role, there are choices to make, challenges to overcome, and ideas to take to the next level. Through our Code of Conduct, we equip LPL advisors and employees at all levels with the guidance for proceeding ethically. That includes ensuring we all:

  • Provide information that is accurate, complete, objective, relevant, timely, and understandable to ensure full, fair, accurate, timely, and understandable disclosure in reports and documents that LPL Financial files with, or submits to, government agencies and in other public communications
  • Comply with rules and regulations of federal, state, provincial, and local governments and other appropriate private and public regulatory agencies
  • Act in good faith, responsibly, with due care, competence, and diligence, and without misrepresenting material facts or allowing one’s independent judgment to be subordinated
  • Respect the confidentiality of information acquired in the course of one’s work except when authorized or otherwise legally obligated to disclose; confidential information acquired in the course of one’s work will not be used for personal advantage
  • Share knowledge and maintain skills important and relevant to shareholders’ needs
  • Proactively promote and demonstrate ethical behavior as a responsible partner among peers, in the work environment, and in the community
  • Achieve responsible use of and control over all assets and resources employed or entrusted

The LPL Code of Conduct also helps us embrace and practice our corporate values daily—the things we value about working at LPL Financial.

Corporate Governance

Operating a business responsibly starts at the top. Our Corporate Governance guidelines help ensure the ethical functioning of LPL’s Board and its committees. It also assists them in carrying out their responsibilities and making decisions that serve the best interests of LPL and its broad range of stakeholders.

Strong Regulatory Track Record

Thousands of advisors and hundreds of institutions choose to affiliate with LPL, in part, because of our reputation for maintaining high ethical standards. We continue to add resources to build on our strong record of helping protect our advisors and their clients in the changing regulatory landscape.

Our 300-person Compliance team provides oversight of compliance and monitoring requirements. Working closely with our advisors as a true business partner, we act proactively on their behalf to help them run compliant practices.

In addition, LPL custodies and clears the majority of our customers’ transactions, providing an enhanced customer experience and expedited processing capabilities—all backed by robust and responsive service center and operations organizations focused on providing timely, accurate, and consistent support.


 
Learn More

For more insights into LPL’s responsible business practices, download any of the materials listed below.

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