UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
March 14, 2011
Date of report (date of earliest event reported)
LPL Investment Holdings Inc.
(Exact name of registrant as specified in its charter)
Delaware |
|
001-34963 |
|
20-3717839 |
(State or other jurisdictions of |
|
(Commission File Number)
|
|
(I.R.S. Employer Identification |
One Beacon Street, Floor 22
Boston MA 02108
(Address of principal executive offices) (Zip Code)
(617) 423-3644
(Registrants telephone number, including area code)
N/A
(Former Name or Former Address, if Changed since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.05 Costs Associated with Exit or Disposal Activities.
On March 14, 2011, LPL Investment Holdings Inc. (the Company) committed to a corporate restructuring plan to enhance its service offering while generating efficiencies for the Company. The restructuring plan consolidates the operations of UVEST Financial Services Group, Inc. (UVEST) with those of LPL Financial LLC (LPL Financial). In connection with the consolidation, certain registered representatives currently associated with UVEST will move to LPL Financial through a transfer of their licenses. The transfers are expected be completed in stages, with the first stage commencing in June 2011, and the final stage to be completed by December 2011. Following the transfer of registered representatives and client accounts to LPL Financial, all registered representatives and client accounts that transferred shall then be associated with LPL Financial, a clearing broker/dealer. In addition, UVEST will terminate its clearing relationship with Pershing LLC.
The Company anticipates recording pre-tax charges of $52.6 million over the course of this restructuring plan, including a non-cash impairment charge of $5.6 million. These charges are comprised of $7 million of advisor retention and related benefits, $11.4 million of contract termination fees, $9.8 million in technology costs, and $18.8 million in other expenditures principally relating to the conversion and transfer of registered representatives and client accounts from UVEST to LPL Financial.
These restructuring activities are expected to be completed by the end of 2011. The Company expects this restructuring will improve pre-tax profitability by approximately $10 million to $12 million per year beginning in 2012 by creating operational efficiencies and revenue opportunities.
A copy of the Companys press release announcing the restructuring activities described above is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
99.1 Press Release dated March 14, 2011.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
LPL INVESTMENT HOLDINGS INC. | ||
|
| ||
|
| ||
|
By: |
/s/ Robert J. Moore | |
|
|
Name: |
Robert J. Moore |
|
|
Title: |
Chief Financial Officer |
|
| ||
|
| ||
Dated: March 14, 2011 |
|
Exhibit 99.1
LPL Financial Announces Consolidation of UVEST
Financial Advisors, Investment Program Managers to Benefit from Operational and Service Efficiencies, Enhanced Functionality of Technology Platform
Creates Unified Financial Institutions Platform for Future Growth
Boston, MA March 14, 2011 LPL Financial LLC, the nations largest independent broker-dealer and a wholly owned subsidiary of LPL Investment Holdings Inc. (NASDAQ: LPLA), today announced that it will consolidate UVEST Financial Services Group, Inc. (UVEST), onto its self-clearing platform. LPL Investment Holdings Inc. acquired UVEST as a wholly owned subsidiary in 2007.
The consolidation, which is expected to commence in June and to be completed by the end of this year, underscores the commitment of LPL Financial to the financial institution channel and creates a unified platform for continued future growth in this space. Bank and credit union investment programs currently with UVEST will remain part of the existing LPL Financial Institution Services division, which is the nations largest provider of third-party investment services to banks and credit unions.
Through this integration, bank- and credit union-based advisors and investment program managers currently served by UVEST will benefit from operational and service efficiencies in addition to enhanced functionality through the LPL Financial BranchNet technology platform. Dan Arnold, divisional president and managing director for LPL Financial Institution Services, will continue to lead the firms financial institutions business.
Mr. Arnold said, Our priority has always been to provide our institutions with access to the broadest possible range of services and support. Feedback directly from the financial institutions we serve has confirmed that they want access to the full scope of resources available on the LPL Financial platform.
By concentrating our support for financial institutions on one self-clearing platform, LPL Financial will be better positioned to make greater investments in technology, research, practice management, and back-office support in addition to creating operational efficiencies and increased simplicity that will yield enhancements for all of our customers. Plus, because UVEST is already an affiliate of LPL Financial, we expect the transition to be streamlined and efficient for our customers.
The business opportunity for advisors in community banks and credit unions has never been greater, as investors search for objective, conflict-free advice delivered at the local level at the same time that many community banks and credit unions begin to implement growth plans previously delayed due to market circumstances. This consolidation will help UVEST advisors and the banks and credit unions where they work to capitalize on this opportunity by providing
access to the full range of LPL Financial resources and support.
About LPL Financial
LPL Financial LLC, a wholly owned subsidiary of LPL Investment Holdings Inc., is an independent broker-dealer. LPL Financial and its affiliates offer proprietary technology, comprehensive clearing and compliance services, practice management programs and training, and independent research to over 12,400 independent financial advisors and financial advisors at financial institutions. Additionally, LPL Financial supports approximately 4,000 financial advisors who are affiliated and licensed with insurance companies with customized clearing, advisory platforms and technology solutions. LPL Financial and its affiliates have over 2,500 employees and offices in Boston, Charlotte, and San Diego. For more information, please visit www.lpl.com.
Securities and advisory service offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC
# # #
LPLA-C
LPL Financial Media Contacts |
|
Joseph Kuo |
Michael Herley |
LPL Financial |
Kekst and Company |
(704) 733-3931 |
(212) 521-4897 |
media.inquiries@lpl.com |
michael-herley@kekst.com |