“AXA Advisors’ broker dealer platform is a critical component of our retail distribution business,” said Christine Nigro, president of AXA Advisors, in a press release. “This renewal is a natural extension of our ongoing efforts to provide clients with an innovative and robust investment platform.”
Industry experts note that clearing work can help LPL strengthen its long-term financial results by diversifying its revenues, which it has done not only in clearing, but also in bank distribution and the retirement-plan business, they note.
“This is important business for LPL … and suggests that they are a successful business-to-business player,” said Chip Roame (left), head of Tiburon Strategic Advisors, in an interview. “They have the capacity not only to serve individual reps, who have limited power to make demands of LPL, but also have the ability to satisfy a larger institutional player that will have its own demands.”
LPL Financial, which has about 12,800 financial advisors affiliated with its independent broker-dealer operations and some 730 financial institutions as clients nationwide. It reported fourth-quarter earnings late Tuesday that beat last year’s results but missed analysts’ expectations. Profits were $39.4 million, while sales totaled close to $829 million.