Member FINRA/SIPC Retirement Plan Consulting February 3, 2011 Jason Benham, AVP, Retirement Plan Consulting Services Jonathan Anderson, Retirement Plan Consulting Services For Broker/Dealer Use Only. Not for Distribution to the Public.

1 LPL Financial Member FINRA/SIPC Retirement Plans Update Agenda  The Opportunity  Current Regulatory Environment  LPL Financial Retirement Partners –Retirement Plan Consulting Services

2 LPL Financial Member FINRA/SIPC Source: Cerulli Quantitative Update – Retirement Markets, 2009 Significant Market Opportunity

3 LPL Financial Member FINRA/SIPC  Major shift in how people prepare for retirement –Death of the Defined Benefit Plan –Increasing dependence on 401(k)s and IRAs  401(k) Plan Sponsors Need Help –Guidance from retirement plan focused advisors –Enhanced service offerings and increased demands from products  Rollover Capture –Retain the relationship and gather more assets –Need for advice expands dramatically –Increasing focus on decumulation Significant Market Opportunity

4 LPL Financial Member FINRA/SIPC The Current Regulatory Environment Current Final Regulations:  408(b)(2)  Participant Disclosure  Schedule C on 5500 Proposed:  Participant Advice  Definition of “Fiduciary”

5 LPL Financial Member FINRA/SIPC LPL Financial Retirement Partners

6 LPL Financial Member FINRA/SIPC LPL Financial Retirement Partners Retirement Plan Consulting Services  Dedicated team of experienced retirement plan sales consultants  Committed to growing your revenue  Single point of contact  Training & education  Sales & marketing  Case consultation

7 LPL Financial Member FINRA/SIPC Retirement Plan Consulting Services A New Resource to Help You Win More Business  Training & Education  Prospecting & Marketing  Pre-sale & Point-of-sale  On-going Service & Maintenance  Retirement Plan Consulting Program (RPCP)

8 LPL Financial Member FINRA/SIPC Prospecting & Marketing  Qualified Plan Prospecting Tools  Networking Strategies  Pre-approved Marketing Letters  ClientsFirst Retirement Module

9 LPL Financial Member FINRA/SIPC Pre-sale & Point-of-sale  Sample Pitchbook  Sample Statement of Services  Sample Benchmarking Reports  Sample Fee Summary Comparison

10 LPL Financial Member FINRA/SIPC Success Story #1 LPL Financial Advisor out of PA with a $4 million take over opportunity  Advisor called the Retirement Plan Consulting Team and prepared a pitch book, statement of services, and sample benchmarking reports.  During the discovery meeting the advisor reviewed all of the services he could provide and discussed a broker of record change.  The Plan sponsor was so impressed with the thoroughness and preparedness of the advisor that he committed to the change in that first meeting.

11 LPL Financial Member FINRA/SIPC Success Story #2 LPL Financial Advisor in CA with a $10 million take over opportunity  Doctors office with 80% of the partners in self directed brokerage accounts with different advisors.  Advisor called the Retirement Plan Consulting Team and was suggested to engage a local TPA.  LPL retirement plan consultant discussed an effective sales strategy to present a more efficient retirement plan solution.  After discovery meeting and sales presentation, advisor won the plan and each partner transferred their account back to one master trust account.

12 LPL Financial Member FINRA/SIPC Retirement Plan Consulting Program (RPCP) Fee-for-service consulting under the LPL Financial corporate RIA  Qualified Advisor Serves as Consultant and Fiduciary to Plan  Flexible Compensation Options hourly fee assets under management fee flat fee  Qualification Process

13 LPL Financial Member FINRA/SIPC Summary  Tremendous Opportunity  Dynamic Regulatory Environment  Individualized Support and Consultation

14 LPL Financial Member FINRA/SIPC Retirement Plan Consulting Services Jason Benham, AVP Sales Desk Manager Ext Jonathan Anderson West Coast Territory Ext Rebecca Hourihan East Coast Territory Ext Ted Hageman Central Territory Ext k (4015)

15 LPL Financial Member FINRA/SIPC Retirement Plan Consulting Services Thank You For Your Business!