NEW YORK, Feb 9 (Reuters) - LPL Financial Holdings Inc , the largest U.S. independent brokerage and registered investment adviser, reported a 55.6 percent jump in quarterly earnings on higher revenue in its asset-based business and higher transaction and fees.
The company’s net income rose to $41.74 million, or 46 cents per share, in the fourth quarter ended Dec. 31, from $26.81 million, or 28 cents per share, a year earlier.
Total net revenue fell 1.3 percent to about $1 billion.
These are the first quarterly earnings to come out since Dan Arnold, previously LPL’s president responsible for the firm’s long-term growth strategy, took over the top job from Mark Casady on Jan. 3.
“I am honored to lead LPL into our next phase of growth,” Arnold said in a statement. “We had a strong 2016 with our best recruiting year ever, and we made significant progress on service, technology and preparing for the DOL fiduciary rule.”
The U.S. Department of Labor’s fiduciary rule, passed by the Obama administration, governs financial advice on retirement products. It is set to take effect on April 10, but it may be delayed as the agency reviews the rule at the instruction of President Donald Trump.
Casady, 56, joined LPL in 2002. He will remain on LPL’s board of directors as a non-executive chair until he retires in March.
LPL provides products and support to more than 14,000 independent financial advisers and 700 banks and credit unions. (Reporting By Elizabeth Dilts; additional reporting by Sruthi Shankar in Bengaluru; Editing by Bernard Orr)