The LPL Government Relations team represents a leading wealth management firm and the largest independent broker/dealer in the United States*, supporting more than 29,000 financial professionals and 1,200 financial institutions. Collectively, our financial professionals serve more than 6 million retail investors with $1.7 trillion in advisory and brokerage assets in every single state.
We believe that everyone should have access to personalized financial advice and are committed to ensuring access to resources that give them the ability to save for their future. We also believe that financial advisors should have the freedom they deserve to choose the business model, services and financial technology resources to allow them to run their perfect practice and focus on taking care of their clients
The Government Relations team works to build and strengthen relationships with federal and state policymakers so that we can serve as a resource when policies affecting our industry are being considered. We proactively seek opportunities to help government leaders understand the value of personalized financial advice, allowing us to advocate on behalf of our affiliated financial professionals and their clients.
We focus our advocacy on areas directly impacting the financial services sector, positioning LPL as an expert and trusted partner on policies that impact the delivery of financial advice. This includes:
Championing Independent Advice
LPL believes that financial professionals should have the freedom and flexibility to build a business that best serves their clients. We are committed to advocating to protect the ability to choose between business models, including opting to be an independent contractor, and to using our voice to impact issues facing small business owners.
This includes advocating on the DOL’s independent contractor rule and engaging with states who propose changes to worker classification.
Promoting a Modernized Regulatory Regime
The financial services industry operates under a complex and robust regulatory structure. We believe that there are opportunities to modernize and simplify rules to keep pace with advances in technology and innovation. This includes our continued commitment to offering artificial intelligence solutions that enable operational efficiency, so financial professionals have more time to focus on clients.
This includes advocating for eDelivery of account documents and leveraging technology advancements for operational efficiency, including risk-based remote branch exams.
Ensuring that Tax Policy Encourages Economic Growth
LPL supports sensible tax policy that motivates individuals to save, build financial security and prepare for retirement. We also know that most of our affiliated financial professionals have benefited from the Section 199A pass-through deduction created by the Tax Cuts and Jobs Act and have reinvested those savings into growing their practices. As Congress considers extending certain tax provisions, LPL is advocating for Section 199A to be extended and expanded so that all financial professionals have equal opportunity to take advantage of the deduction regardless of income. We are also seeking the extension of individual tax provisions, including the doubling of the standard deduction and estate tax exemption, and restoring a tax credit for financial advice.
This includes advocating for the extension and expansion of the Section 199A 20% pass-through deduction to be extended and expanded and for provisions providing savings to individual savers to be extended.
Prioritizing Investor Protection and Safeguarding Savings
In addition to helping clients achieve financial security, financial professionals pay an equally critical role to protect them from fraud. We work with regulators to proactively develop policies to safeguard investors from bad actors. We also believe that policymakers should enable thoughtful regulation to support access to a variety of products and services that help investors of all income without creating an overly burdensome and complex regulatory regime.
This includes advocating for retirement savings incentives, continued implementation of The SECURE Act and SECURE 2.0, and senior investor protection.
Upholding a Harmonized Best Interest Standard of Care
We support the U.S. Securities and Exchange Commission’s Regulation Best Interest (“Reg BI”) and the uniform adoption of this standard in every state. This harmonized standard of care ensures that financial professionals are always acting in the best interests of their clients, and investors have a clear understanding of the ways they receive guidance and advice.
This includes advocating for individual states to adopt Reg BI into statute by reference and for federal regulators to uphold Reg BI as the prudential standard of care
Fostering Financial Inclusion
We believe that everyone deserves access to personalized financial advice and focus our advocacy efforts on supporting opportunities to expand access to advice to investors of all incomes, backgrounds and locations. We are fully dedicated to developing the next generation of financial professionals, working alongside the LPL Foundation to increase access to the pipeline of career-ready talent from underserved communities.
This includes working with policymakers to seek opportunities to advocate for a strong pipeline of talent into the sector and advocating for the preservation of low-cost products and services.
* As reported by Financial Planning magazine, June 1996-2024, based on total revenue
