Prudential Financial, Inc. (NYSE: PRU) (“Prudential”) and LPL
Financial Holdings Inc. (Nasdaq: LPLA) (“LPL”) today announced a
strategic relationship agreement designed to enhance the customer
and financial professional experience for Prudential’s retail
wealth management business, Prudential Advisors, and accelerate
growth for both firms.
Under the agreement, Prudential will move retail
brokerage and investment advisory assets from Prudential Advisors’
current third-party custodian to LPL Financial, and leverage LPL’s
broker-dealer and registered investment advisory services. The
transition is expected to be completed in the latter part of 2024,
subject to receipt of regulatory approval and other conditions.
LPL will expand its technology platform and
servicing model to provide a tailored experience for the more than
2,600 Prudential Advisors financial professionals. Following the
transition, Prudential Advisors will continue to work with clients
in all 50 states to offer financial planning, investment, insurance
and retirement solutions, enhanced by the improved capabilities of
the LPL platform and utilizing LPL for clients’ brokerage and
investment advisory needs.
“LPL’s best-in-class platform will significantly
improve capabilities to help our advisors serve clients and grow
their practice even faster,” said Brad Hearn, president of Retail
Advice and Solutions at Prudential. “With this agreement, we are
further investing in our Prudential Advisors business, while
streamlining and reducing back-office resource demands.”
Hearn added that the strategic relationship also
“reinforces our commitment to improving the customer and advisor
experience, while preserving the value proposition that
differentiates Prudential, including strong local advisor support,
a robust leads program, trusted brand equity, and the flexibility
for advisors to use the business model that works best for
them.”
Ken Hullings, LPL’s executive vice president,
Enterprise Business Development, said the relationship will allow
both companies to leverage their strengths and core capabilities
for the benefit of financial advisors, their clients and their
businesses.
“The partnership-oriented spirit of this agreement
between LPL and Prudential is a significant milestone in our
mission to offer sophisticated wealth management capabilities to
more enterprise firms and their advisors,” he explained.
“Prudential has a revered reputation of being a pillar of the
financial services industry. They have also been a valued partner
of LPL’s since 1989 in the life and annuity space. We look forward
to our expanded relationship and welcoming Prudential Advisors to
our platform.”
Forward-Looking Statements
Certain of the statements included in this release,
such as those regarding the completion of the strategic
relationship agreement and the expected transition of assets
associated therewith; the benefits anticipated therefrom; the
planned changes to LPL’s existing platform and servicing model; and
the potential expansion of LPL’s enterprise business, constitute
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Words such as “expects,”
“believes,” “anticipates,” “plans,” “assumes,” “estimates,”
“projects,” “intends,” “should,” “will,” “shall” or variations of
such words are generally part of forward-looking statements.
Forward-looking statements are made based on current expectations
and beliefs concerning future developments and their potential
effects upon Prudential, LPL or both. In particular, no assurance
can be provided that the assets reported as serviced by financial
advisors affiliated with Prudential will translate into assets
serviced by LPL, that advisors affiliated with Prudential will
transition registration to LPL or that the benefits that are
expected to accrue to Prudential, LPL and advisors as a result of
the strategic relationship agreement will materialize. These
forward-looking statements are not a guarantee of future
performance and involve risks and uncertainties, including
economic, legislative, regulatory, competitive and other factors,
and there are certain important factors that could cause actual
results or the timing of events to differ, possibly materially,
from expectations or estimates expressed or implied in such
forward-looking statements. Important factors that could cause or
contribute to such differences include: the failure of the parties
to satisfy the closing conditions applicable to the strategic
relationship agreement, including receiving regulatory approval, in
a timely manner or at all; difficulties or delays of LPL in
transitioning advisors affiliated with Prudential Advisors,
onboarding clients and businesses or transitioning their assets
from Prudential Advisors’ current third-party custodian to LPL; the
inability of LPL to sustain revenue and earnings growth or to fully
realize revenue or expense synergies or the other expected benefits
of the transaction, which depend in part on LPL’s success in
onboarding assets currently served by advisors with Prudential;
disruptions to Prudential’s or LPL’s businesses due to
transaction-related uncertainty or other factors making it more
difficult to maintain relationships with financial advisors and
clients, employees, other business partners or governmental
entities; the inability of LPL or Prudential to implement
onboarding plans; the choice by clients of Prudential affiliated
advisors not to open brokerage and/or advisory accounts at LPL;
changes in general economic and financial market conditions,
including retail investor sentiment; fluctuations in the value of
assets under custody; and the effects of competition in the
financial services industry, including competitors’ success in
recruiting Prudential affiliated advisors. Certain additional
important factors that could cause actual results or the timing of
events to differ, possibly materially, from expectations or
estimates expressed or implied in such forward-looking statements
can be found in the “Risk Factors” and “Forward-Looking Statements”
(in the case of Prudential) or the “Risk Factors” and “Special Note
Regarding Forward-Looking Statements” (in the case of LPL) sections
included in each of Prudential’s and LPL’s most recent Annual
Report on Form 10-K. Except as required by law, Prudential and LPL
do not undertake to update any particular forward-looking statement
included in this document as a result of developments occurring
after the date of this press release.
About Prudential
Prudential Financial, Inc. (NYSE: PRU), a global
financial services leader and premier active global investment
manager with more than $1.4 trillion in assets under management as
of June 30, 2023, has operations in the United States, Asia,
Europe, and Latin America. Prudential’s diverse and talented
employees help make lives better and create financial opportunity
for more people by expanding access to investing, insurance, and
retirement security. Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for nearly 150 years.
For more information, please visit news.prudential.com.
Prudential Advisors supports the growth and
success of the businesses of more than 2,600 financial
professionals, fee-based financial planners, financial advisors,
and field managers across the country. This enables financial
professionals to deliver holistic financial advice by aligning
industry-leading resources, tools and expertise with an open
architecture approach to investment solutions. For more
information, please visit prudentialadvisors.com.
© 2023 Prudential Financial, Inc. and its related
entities. Prudential, the Prudential logo, and the Rock symbol are
service marks of Prudential Financial, Inc. and its related
entities, registered in many jurisdictions worldwide.
About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was
founded on the principle that LPL should work for advisors and
enterprises, and not the other way around. Today, LPL is a leader
in the markets we serve, serving nearly 22,000 financial advisors,
including advisors at approximately 1,100 enterprises and at
approximately 550 registered investment advisor firms nationwide.
We are steadfast in our commitment to the advisor-mediated model
and the belief that Americans deserve access to personalized
guidance from a financial professional. At LPL, independence means
that advisors and enterprise leaders have the freedom they deserve
to choose the business model, services and technology resources
that allow them to run a thriving business. They have the
flexibility to do business their way. And they have the freedom to
manage their client relationships, because they know their clients
best. Simply put, we take care of our advisors and enterprises, so
they can take care of their clients.
Securities and Advisory services offered through
LPL Financial LLC ("LPL Financial"), a registered investment
advisor. Member FINRA/SIPC. LPL Financial and its affiliated
companies provide financial services only from the United States.
Prudential and LPL Financial are separate entities.
Throughout this communication, the terms “financial
advisors” and “advisors” are used to refer to registered
representatives and/or investment advisor representatives
affiliated with LPL Financial.
We routinely disclose information that may be
important to shareholders in the "Investor Relations" or "Press
Releases" section of our website.
Contacts
Prudential Media RelationsMarisa
Amadormarisa.amador@prudential.com
LPL Media
Relationsmedia.relations@lplfinancial.com(706) 254-4100
LPL Investor
Relationsinvestor.relations@lplfinancial.com
Tracking # 1-05376974
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