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LPL Clients Can Borrow Goldman Sachs’ Money Against Investments

By Thomas Coyle March 20, 2018

Clients of advisors affiliated with LPL Financial now have access to securities-backed lending through Goldman Sachs. LPL joins about 40 other independent firms as users of Goldman’s Private Bank Select lending program.

“For suitable clients, it can cut the wait time for obtaining a non-purpose securities-based loan from Goldman Sachs Bank USA to days from several weeks with no fees or paper to push,” Goldman says in a press release. The online-access program is backed by a team of Goldman lending specialists who can help FAs understand and monitor loan processes in real time.

Through Select, LPL clients can borrow between $75,000 and $25 million against the value of their accounts without having to liquidate investments. The money can be used for anything but “reinvestment in marketable securities,” Goldman says.

For LPL research director Kirby Horan-Adams, the tie-in with Goldman is about “providing advisors with access to products and resources that enable choice and enhance the service and value they can deliver to their clients,” she says in the Goldman press release. Providing its affiliates with access to the lending program “is one more way LPL is making it easier for advisors to manage their businesses.”

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Putting a finer line on it, Goldman’s private-banking chief Andrew Kaiser says the outsourced lending program enables FAs to “expand their relationships with clients by helping them manage their borrowing needs as efficiently as they manage their investments.”

LPL-affiliated advisors have been offering Goldman investment products and other liquidity tools to their clients for two decades, according to Goldman.

Goldman says LPL, which supports about 15,000 FAs, is one of the biggest firms with access to its Select program.