Michelle M. Kelley Senior Vice President Associate Counsel One Beacon Street, 22nd Floor Boston, MA 02108-3106
[email protected] 617 897 4033 office 617 556 4002 fax February 3, 2011 VIA ELECTRONIC MAIL to
[email protected] The Office of Regulations and Interpretations Employee Benefits Security Administration Attn: Definition of Fiduciary Proposed Rule Room N-5655 U.S. Department of Labor 200 Constitution Avenue, NW Washington, DC 20210 Ladies and Gentleman: This letter responds to the request by the Department of Labor (“Department”) for comments on the Department’s proposed regulations on the definition of the term “fiduciary.”1 We appreciate the opportunity to comment on the Proposal and related questions raised by the Department. I. Introduction LPL Financial LLC (“LPL”) is one of the nation’s leading diversified financial services companies and is registered with the Securities and Exchange Commission (“SEC”) as both an investment adviser and broker-dealer. LPL currently supports the largest independent registered representative base2 (referred to herein as “financial advisors”) and the fifth largest overall registered representative base in the United States, providing financial professionals with the front, middle, and back-office support they need to serve the large and growing market for brokerage services and independent investment advice. As a dual registrant, LPL is subject to regulation by the SEC for its investment advisory services, and the Financial Industry Regulatory Authority (“FINRA”), the SEC and the states for its broker-dealer activities. LPL provides a range of services with respect to its customers, which include various types of retail customers, including individual retirement accounts (“IRAs”), and others, such as plans subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) (collectively, IRAs and plans subject to ERISA are referred to as “retirement customers”).