15 Aug 2017
Prudential plc announces sale of broker-dealer network in the US
Prudential plc (“Prudential”), the UK-based financial services group, through its subsidiary National Planning Holdings, Inc. (“NPH”) today sold its US independent broker-dealer network, consisting of INVEST Financial Corporation, Investment Centers of America, Inc., National Planning Corporation and SII Investments, Inc., to LPL Financial LLC, the largest independent broker-dealer in the US.
The transaction is structured as an asset sale, which includes substantially all the business of the network, for an initial purchase price of US$325 million, which may increase to a maximum of approximately US$448 million subject to certain transition criteria. The transaction has closed after receiving all necessary regulatory approvals and the transition is expected to be completed by the end of the first quarter of 2018.
Barry Stowe, Chairman and Chief Executive Officer of Prudential plc’s North American Business Unit, said:
“While we still very much believe in the independent broker-dealer model, our primary strategy in North America is to focus on being the leading manufacturer of retirement products. The transaction with LPL Financial provides us with a compelling opportunity to divest our ownership in the NPH network to a leading independent broker-dealer well suited to support financial advisors and their retail clients going forward.”
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Notes to Editors:
About National Planning Holdings, Inc.
National Planning Holdings, Inc. (NPH) is a broker-dealer holding company and an affiliate of Lansing, Mich.-based Jackson National Life Insurance Company® (Jackson®). NPH serves as the holding company for the independent broker-dealers INVEST Financial Corporation®, Investment Centers of America, Inc., National Planning Corporation® and SII Investments, Inc.® As of 30 June 2017, the member firms of the NPH network supported nearly 3,200 advisors across the country with over 1.5 million customer accounts and approximately $124 billion in assets under management. NPH and Jackson are wholly owned by Prudential plc (NYSE: PUK), a company incorporated in England and Wales. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
About LPL Financial LLC
LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (NASDAQ: LPLA), is a leader in the retail financial advice market and provided service to approximately $542 billion in brokerage and advisory assets as of 30 June 2017. LPL Financial is one of the fastest growing RIA custodians and the nation’s largest independent broker-dealer (based on total revenues, Financial Planning magazine June 1996-2017), and the firm and its financial advisors were ranked No. 1 in net customer loyalty in a 2016 Cogent ReportsTM study. LPL Financial provides proprietary technology, comprehensive clearing and compliance services, practice management programs and training, and independent research to more than 14,000 financial advisors and over 700 financial institutions, enabling them to provide a range of financial services including wealth management, retirement planning, financial planning and other investment services to help their clients turn life’s aspirations into financial realities. As of 30 June 2017, financial advisors associated with LPL Financial served more than 4 million client accounts across the US as well as an estimated 46,000 retirement plans with an estimated $138 billion in retirement plan assets. Additionally, LPL Financial supports approximately 3,700 financial advisors licensed and affiliated with insurance companies with customized clearing, advisory platforms, and technology solutions. LPL Financial and its affiliates have more than 3,400 employees with primary offices in Boston, Charlotte, and San Diego.
About Prudential plc
Prudential plc and its affiliated companies constitute one of the world's leading financial services groups, serving around 24 million insurance customers, with £635 billion of assets under management (as at 30 June 2017). Prudential plc is incorporated in England and Wales and is listed on the stock exchanges in London, Hong Kong, Singapore and New York. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
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