LPL Said to Opt Out of Rumored Sale
Donald Trump’s presidential election win has reportedly caused LPL Financial to decide to stay independent despite earlier reports it was considering a sale, WealthManagement.com writes.
The company’s board has “great confidence in LPL’s ability to thrive as an independent public company,” a spokeswoman for the independent broker-dealer tells the web publication. A source familiar with the matter also told Bloomberg that LPL’s decision “could” have been influenced by Trump’s win, WealthManagement.com writes. LPL was rumored to be considering a sale in October, and analysts attributed it in part to shareholders wanting to sell the company in light of the Department of Labor’s fiduciary rule. Trump’s administration is seen by some as opposed to the rule, which requires retirement brokers to put clients’ interests first.
Sources told Reuters in October that LPL was mulling a possible sale, with Goldman Sachs allegedly brought on to help handle the deal. Last month, an unnamed source told StreetInsider.com that Charles Schwab was willing to pay up to $4.5 billion for the firm. In both cases, all companies involved declined comment.
Last week, LPL announced that CEO Mark Casady would retire January 3 after leading the firm for 14 years, with Dan Arnold, LPL’s current president, assuming his duties.
That decision was apparently also motivated in part by the DOL rule. Casady told the Wall Street Journal he thought it was wise to transfer the reins prior to the rule going into effect in April.