LPL Financial to integrate broker/dealers, break from Pershing platform

LPL Financial Corporation announced Wednesday it will fully integrate advisors from three of its affiliated broker/dealers - Associated Securities Corp., Mutual Service Corporation, and Waterstone Financial Group, Inc. - into its organization.

The integration process is expected to commence immediately, following final approval by the Financial Industry Regulatory Authority (FINRA), and to be concluded by mid-September, according to a statement released by LPL Financial. Derek Bruton, national sales manager for LPL Financial Independent Advisor Services and CEO of the affiliated broker/dealers, will continue to lead the firm's independent advisor business, reporting to Bill Dwyer, president, national sales and marketing for LPL Financial.

The transition calls for about 1,700 advisors to do away with Pershing LLC's clearing platform in favor of LPL Financial's, according to a report from Dow Jones Newswires, which obtained the following statement from a Pershing spokesperson:

"LPL Financial has been, and remains, a valued customer. It has and continues to be our pleasure to support LPL Financial."

Pershing could not comment on its customers' business decisions, according to Dow Jones Newswires.

Bill Dwyer, president of national sales and marketing at LPL Financial, told Dow Jones Newswires the move to LPL's platform will make things less complicated for these brokers who "frequently end up having to run multiple technology platforms on their desk. The more we can reduce that for them, the better."

In a press release following the announcement to advisors Wednesday morning, Dwyer said:

"Since our acquisition of Associated Securities Corp., Mutual Service Corporation, and Waterstone Financial Group, Inc. in 2007, LPL Financial has been committed to enabling our affiliated advisors to deliver objective guidance and superior service to their clients by providing them with proven resources, including our industry-leading research, marketing, conferences and training, and a wide range of additional support. Their feedback confirms they want additional access to the full capabilities of our platform."

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