Member FINRA/SIPC Advisor Facing Technology Strategic Roadmap LPL Advisor & Client Technology Future State January, 2012

1 LPL Financial Member FINRA/SIPC Manage Practice Plan & Build Based on the Advisor Business Model Unwinding the seven key areas in an advisor’s business model and filling in Level Two tasks helps understand what work is completed, who might be doing the work within a practice depending on the resources available (e.g. advisor v. assistant), and what systems are impacted to complete any given task. Looking at the advisor’s business model from this point of view helps to clarify affinities within work and sheds significant light on how the competition is working toward a similar end game. Custodial competitors are leveraging a CRM system as the hub and are moving data to a large number of adjacent systems for functions like rebalancing and performance reporting. At the same time, third party providers like Envestnet and Tamarac are building adjacent features on top of their core competency to broaden their reach and create unified solutions. LPL has the ability to have a blend of these approaches and deliver significantly more value to the advisor. Implement referral programs Manage website Manage social networking Print advertising Radio/TV Conduct seminars Establish relationships with Centers of Influence Generate/manage leads & referrals Set-up, prepare for, and conduct introduction meetings Understand client needs & resources Know Your Customer (KYC) Risk Tolerance Questionnaire (RTQ) Analysis & plan creation Portfolio analysis Establish fee Insurance proposal creation (Life, DI, LTC) Annuity hypothetical creation Health insurance analysis Center of Influence engagement Investment selection Model management Investment Policy Statement Proposal generation New account opening Fund account Trade Insurance application (life, DI, LTC) & underwriting Annuity application Cashiering Retirement distribution Post transaction follow-up Performance reporting Rebalance Respond to client requests Prepare for and conduct service meetings Account maintenance Client access to account information Fee billing Goal Setting Commission tracking Documented business plan Manage technology Marketing plan Continuing education HR/payroll Marketing Manage Clients & Prospects AnalysisManage AssetsProcess BusinessMonitor & ServiceManage Practice

2 LPL Financial Member FINRA/SIPC Advisor Workflow Comprehensive Advisor Workflow-based Technology Platform Implement referral programs Manage website Manage social networking Print advertising Radio/TV Conduct seminars Establish relationships with Centers of Influence Generate/manage leads & referrals Set-up, prepare for, and conduct introduction meetings Understand client needs & resources Know Your Customer (KYC) Risk Tolerance Questionnaire (RTQ) Analysis & plan creation Portfolio analysis Establish fee Insurance proposal creation (Life, DI, LTC) Annuity hypothetical creation Health insurance analysis Center of Influence engagement Investment selection Model management Investment Policy Statement Proposal generation New account opening Fund account Trade Insurance application (life, DI, LTC) & underwriting Annuity application Cashiering Retirement distribution Post transaction follow-up Performance reporting Rebalance Respond to client requests Prepare for and conduct service meetings Account maintenance Client access to account information Fee billing Goal Setting Commission tracking Documented business plan Manage technology Marketing plan Continuing education HR/payroll Integrated Client Acquisition Workflow Integrated Analysis Workflow Integrated Trading & Rebalancing Workflow Integrated Client Service Workflow Core Capabilities When looking holistically at the advisor’s business model and Level Two steps in each four key workflows bubble to the top as illustrated below. Competitive advantage is possible by looking more holistically and addressing all four elements within an advisor’s practice. For example, the Integrated Client Service Workflow is a very time consuming task and may be able to be distilled down and automated adding significant value. Marketing Manage Clients & Prospects AnalysisManage AssetsProcess BusinessMonitor & ServiceManage Practice

3 LPL Financial Member FINRA/SIPC What we’re focused on in 2012 ProjectDescription Trading 2012Enhanced trading for the advisory platform in Q and the brokerage platform in Q Key elements include: Block trading, batch, and basket trading Average price Trailing stop Complex models New Client WebsiteEnhanced user experience for the client website, including: 2 years of historical transactions Mobile platform for clients (Apple & Android) Secure Messaging Enhanced “Go Green” capabilities Mobile Platform for AdvisorsA mobile platform for advisors giving them access to client portfolio, account, position, and transaction information Portfolio Manager EnhancementsA new consolidated report providing much more information in a graphical format and defect fixes to reduce data anomalies Enhancements to Salesforce.com7 enhancements to Salesforce data and workflows

4 LPL Financial Member FINRA/SIPC What we’re focused on in 2012 continued ProjectDescription Electronic Prospectus DeliveryThe ability for an advisor (for a fee) to send paper and electronic prospectuses to a client and reduce work with prospectus receipts Electronic SignaturesThe ability to apply an electronic signature (with a signature pad or click-to- sign) starting with New Accounts, Registration kits, and moving into maintenance forms BranchNet BucketEnhancements to BranchNet