LPL Financial Holdings Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>LPL Financial Holdings Inc. filed its 2023 10-K report detailing its annual financial performance and business operations.</b>

AI Summary

LPL Financial Holdings Inc. (LPLA) filed a Annual Report (10-K) with the SEC on February 21, 2024. LPL Financial Holdings Inc. reported its 2023 fiscal year results on February 21, 2024. The company's fiscal year ended on December 31, 2023. The filing is a 10-K annual report. The company's principal business address is 4707 Executive Drive, San Diego, CA 92121. LPL Financial Holdings Inc. was formerly known as LPL Investment Holdings Inc.

Why It Matters

For investors and stakeholders tracking LPL Financial Holdings Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of LPL Financial's financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors to assess the company's stability and growth prospects. Understanding the details within this report allows stakeholders to evaluate the company's compliance with regulatory requirements and its positioning within the financial services industry.

Risk Assessment

Risk Level: — LPL Financial Holdings Inc. shows moderate risk based on this filing. The company operates in the financial services sector, which is subject to extensive regulation and market volatility, posing inherent risks to its operations and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand LPL Financial's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-21 — Filing Date (Filed as of date)
• 6200 — SIC Code (Standard Industrial Classification)
• 001-34963 — SEC File Number (SEC file number)

Key Players & Entities

• LPL Financial Holdings Inc. (company) — Filer name
• LPL Investment Holdings Inc. (company) — Former company name
• San Diego (company) — Business address city
• CA (company) — Business address state
• DE (company) — State of incorporation

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company operates in a highly regulated industry, and changes in regulations could adversely affect its business.
• Market Conditions [medium — market]: Adverse market conditions, including economic downturns or volatility in the securities markets, could negatively impact the company's financial performance.
• Operational Risks [medium — operational]: The company faces operational risks, including cybersecurity threats and the failure of its information technology systems.

Industry Context

LPL Financial Holdings Inc. operates within the financial services sector, specifically as a broker-dealer and investment advisory firm, serving independent financial advisors.

Regulatory Implications

The financial services industry is subject to extensive regulation by bodies such as the SEC and FINRA, requiring adherence to strict compliance standards.

What Investors Should Do

1. Analyze the detailed financial statements for revenue streams, expenses, and profitability trends.
2. Review the risk factors section to understand potential challenges and their impact on the company's outlook.
3. Compare key performance indicators with industry benchmarks and historical company performance.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-21: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.001 — ge on which registered Common Stock — $0.001 par value per share LPLA The Nasdaq Glo

Filing Documents

• lpla-20231231.htm (10-K) — 2652KB
• exhibit4620231231.htm (EX-4.6) — 22KB
• exhibit101520231231.htm (EX-10.15) — 33KB
• exhibit21120231231.htm (EX-21.1) — 16KB
• exhibit22120231231.htm (EX-22.1) — 1KB
• exhibit23120231231.htm (EX-23.1) — 2KB
• exhibit31120231231.htm (EX-31.1) — 11KB
• exhibit31220231231.htm (EX-31.2) — 11KB
• exhibit32120231231.htm (EX-32.1) — 6KB
• exhibit32220231231.htm (EX-32.2) — 6KB
• exhibit9720231231.htm (EX-97) — 18KB
• lpla-20231231_g1.jpg (GRAPHIC) — 175KB
• 0001397911-24-000011.txt (&nbsp;) — 14141KB
• lpla-20231231.xsd (EX-101.SCH) — 94KB
• lpla-20231231_cal.xml (EX-101.CAL) — 122KB
• lpla-20231231_def.xml (EX-101.DEF) — 548KB
• lpla-20231231_lab.xml (EX-101.LAB) — 1206KB
• lpla-20231231_pre.xml (EX-101.PRE) — 874KB
• lpla-20231231_htm.xml (XML) — 2100KB

Business

Business 1 Item 1A

Risk Factors

Risk Factors 13 Item 1B Unresolved Staff Comments 30 Item 1C Cybersecurity 30 Item 2

Properties

Properties 31 Item 3

Legal Proceedings

Legal Proceedings 31 Item 4 Mine Safety Disclosures 32 Information about our Executive Officers 33 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35 Item 6 Reserved 37 Glossary of Terms 37 Item 7

Management's Discussion and Analysis of Financial Condition and Results of

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Business Overview 38 Our Sources of Revenue 38 Significant Events 39 Executive Summary 39 Key Performance Metrics 40 Economic Overview and Impact of Financial Market Events 44 Results of Operations 45 Liquidity and Capital Resources 50 Debt and Related Covenants 54 Contractual Obligations 55 Risk Management 55 Critical Accounting Policies and Estimates 57 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 62 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 105 Item 9A

Controls and Procedures

Controls and Procedures 105 Item 9B Other Information 107 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 107 PART III Item 10 Directors, Executive Officers and Corporate Governance 107 Item 11

Executive Compensation

Executive Compensation 107 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 107 Item 13 Certain Relationships and Related Transactions, and Director Independence 107 Item 14 Principal Accountant Fees and Services 107 PART IV Item 15 Exhibits and Financial Statement Schedules 107 Item 16 Form 10-K Summary 110

SIGNATURES

SIGNATURES 111 i Table of Contents WHERE YOU CAN FIND MORE INFORMATION We file annual, quarterly, and current reports, proxy statements and other information required by the Securities Exchange Act of 1934, as amended (the "Exchange Act"), with the Securities and Exchange Commission ("SEC"). Our SEC filings are available to the public on the SEC's website at sec.gov . We post the following filings to our website at lpl.com as soon as reasonably practicable after they are electronically filed with or furnished to the SEC: our annual reports on Form 10-K, our proxy statements, our quarterly reports on Form 10-Q, our current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. Copies of all such filings are available free of charge by request via email (investor.relations@lplfinancial.com), telephone ((617) 897-4574) or mail (LPL Financial Investor Relations at 1055 LPL Way, Fort Mill, SC 29715). The information contained or incorporated on our website is not a part of this Annual Report on Form 10-K. We may use our website as a means of disclosing material information and for complying with our disclosure obligations under Regulation Fair Disclosure promulgated by the SEC. These disclosures are included on our website in the "Investor Relations" or "Press Releases" sections. Accordingly, investors should monitor these portions of our website, in addition to following the Company's press releases, SEC filings, public conference calls and webcasts. When we use the terms "LPLFH", "LPL", "we", "us", "our" and "the Company", we mean LPL Financial Holdings Inc., a Delaware corporation, and its consolidated subsidiaries, taken as a whole, unless the context otherwise indicates. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Business

Item 1. Business Overview LPL serves the advisor-mediated marketplace as the nation's largest independent broker-dealer, a leading investment advisory firm, and a top custodian. We serve more than 22,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 570 registered investment advisor ("RIA") firms nationwide, providing the front-, middle- and back-office support our advisors need. Through our comprehensive platform, we offer integrated technology solutions; brokerage and advisory platforms; clearing, compliance, business and planning and advice services; consultative practice management programs and training; and in-house research to help our advisors deliver advice to their clients and run successful businesses. We are steadfast in our commitment to the advisor-mediated model and the belief that investors deserve access to personalized guidance from a financial advisor. We believe advisors should have the freedom to choose the business model, services and technology they need and to manage their client relationships. We believe investors achieve better outcomes when working with a financial advisor, and we strive to make it easy for advisors to do what is best for their clients. We believe that we are the only company that offers the unique combination of an integrated technology platform, comprehensive self-clearing services and access to a wide range of curated non-proprietary products all delivered in an environment unencumbered by conflicts from product manufacturing, underwriting and market-making. LPL Financial Holdings Inc., which is the parent company of our business, was incorporated in Delaware in 2005. The Company's most significant wholly owned subsidiaries are described below: LPL Holdings, Inc. is a direct subsidiary of LPL Financial Holdings Inc. and is an intermediate holding company of our business. LPL Financial LLC ("LPL Financial") is a clearing broker-dealer and an investment adviser that c

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View this 10-K filing on SEC EDGAR