1397911--3/9/2010--LPL_Investment_Holdings

related topics

{system, service, information}

{loss, insurance, financial}

{debt, indebtedness, cash}

{regulation, change, law}

{personnel, key, retain}

{provision, law, control}

{customer, product, revenue}

{financial, litigation, operation}

{operation, natural, condition}

{competitive, industry, competition}

{stock, price, operating}

{capital, credit, financial}

{acquisition, growth, future}

We depend on our ability to attract and retain experienced and productive financial advisors and financial institutions. Our business is exposed to market risk. We face intense competition in our industry. Poor service or performance of the investment products that we offer or competitive pressures on pricing of such service or products may cause retail investors to withdraw their assets on short notice. Regulatory developments and our failure to comply with regulations could adversely affect our business. We are subject to various regulatory capital requirements, which, if not complied with, could result in the restriction of the ongoing conduct, growth, or even liquidation of parts of our business. Failure to comply with ERISA regulations could result in penalties against us. Our business is subject to risks related to litigation, arbitration actions and governmental and self regulatory organization investigations. Our insurance coverage may be inadequate or expensive. Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risks. Misconduct and errors by our employees and our customers could harm our business. The securities settlement process exposes us to risks that may impact our liquidity and profitability. Our networks may be vulnerable to security risks. Failure to maintain technological capabilities, flaws in existing technology, difficulties in upgrading our technology platform, or the introduction of a competitive platform could have a material adverse effect on our business. Disruption of our disaster recovery plans and procedures in the event of a catastrophe could adversely affect our business. We face competition in attracting and retaining key talent. A loss of our marketing relationships with a variety of leading manufacturers of investment products could harm our business. We rely on outsourced service providers to perform key functions. Our business could be materially adversely affected as a result of the risks associated with acquisitions and investments. Lack of liquidity or access to capital could impair our business and financial condition. Our indebtedness could adversely affect our financial health and may limit our ability to use debt to fund future capital needs. Restrictions under certain of our indebtednesses may prevent us from taking actions that we believe would be in the best interest of our business. Provisions of our senior secured credit agreement could discourage an acquisition of us by a third party. If the counterparties to the derivative instruments we use to hedge our business risks default, we may be exposed to risks we had sought to mitigate. The Majority Holders control us and may have conflicts of interest with us. Anti-takeover provisions of our certificate of incorporation and bylaws may reduce the likelihood of any potential change of control or unsolicited acquisition proposal that might be considered favorable. Changes in U.S. federal income tax law could make some of the products distributed by our financial advisors less attractive to clients.

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1397911--3/9/2010--LPL_Investment_Holdings_Inc.