LPL Sale in the Works?
LPL Financial Holdings Inc., the nation’s largest independent broker-dealer and registered investment advisor, is exploring strategic alternatives, including a potential sale, according to a report issued by Reuters.
Citing unnamed sources “familiar with the matter,” the report said that LPL is working with investment bank Goldman Sachs Group Inc. on a sale process that has attracted other companies and private equity firms.
The report comes in the wake of the US Department of Labor Fiduciary rule, which will result in significantly higher costs for regulatory compliance and lower fees from some traditionally high-commission investment offerings.
A deal is not certain, according to the unnamed sources, which asked not to be identified due to the confidential nature of the deliberations.
LPL shares rose sharply on the news, jumping nearly 7.6 percent to close at $33.01 Tuesday.
Spokespeople for LPL and Goldman Sachs declined to comment on the report.
