SAN DIEGO -
The merger of the two indicates further consolidation in the financial service vendor choices open to credit unions. LPL generated approximately $1.7 billion in revenue in 2006.
The companies provide CUs with infrastructure, products and back office support for the sale of non-deposit investment products such as mutual funds, equities, estate planning and trusts to members. The combined entity will serve more than 700 financial institutions, including over 160 credit union partners and has 250 employees.
"We are eager to move forward with integrating our services to bring to fruition the tremendous promise this transaction holds for our bank and credit union clients," said UVEST current president and COO Dan Arnold, who will assume responsibility for the Financial Institution Services (FIS) division of LPL as CEO and president of UVEST. Under the terms of the agreement the UVEST management team will remain in place and Arnold will report to Marc Cassady, chairman, CEO and president of LPL.
LPL has been a fixture at NACUSO conferences for many years, and James Norwood, LPL SVP of FIS told the Credit Union Journal that the combination of the two companies is "a perfect match that leverages the expertise, products, and services of both firms into one."
Norwood added that the new LPL FIS team "will distinguish themselves from their peer group in many areas, including their commitment to the credit union industry," owing to the enhanced ability to provide superior technology. That would include personal as well as automated marketing support, customer service via its self-clearing support platform, and comprehensive compliance support that allows a choice of how the investment program will be supervised, either locally or via the Home Office Supervision program, said Norwood.
"LPL has always been flexible," said Norwood. "We've created models that are designed to meet each credit union's specific needs. The recommended model for each individual credit union is determined by its respective needs and goals. We deliver a needs-based solution to each credit union member."
Norwood acknowledged the need to customize programs for CUs of all asset sizes and memberships (and their variety of income levels), saying, "We understand that every credit union is different in how they approach the investment business. Some CUs may require more attention and require coaching from a practice management standpoint in order to heighten the probability that they will be successful in this business and maximize their results, as opposed to just being in the business to say that they are in it."
"We really want to help credit unions be successful at this business and believe we can do that by providing choices based on services needed and pricing such as fee-based programs that work with CU members in mind who have as little as $15,000 to invest (or millions) may benefit from its advisory programs."
