Goldman Sachs adds LPL Financial to its securities lending business



FILE PHOTO: A view of the Goldman Sachs booth on the floor of the New York Stock Exchange on July 16, 2013. REUTERS / Brendan McDermid

NEW YORK (Reuters) – Goldman Sachs Group Inc has signed LPL Financial Holdings, the largest independent U.S. broker by revenue, to its securities lending platform, the bank said on Tuesday.

Called GS Select, the platform was launched last year to allow Wall Street Bank to target borrowers with less than $ 10 million in assets to invest. GS Select issues loans worth $ 75,000 to $ 25 million which are guaranteed by the borrowers’ investment portfolios.

Typical wealthy Goldman clients have at least $ 50 million in assets. To reach “affluent mass” borrowers, the bank has established relationships with traditional wealth management companies that provide these clients with financial advice.

LPL provides technology, research and support to approximately 14,000 independent US financial advisers who manage approximately 4 million accounts receivable. It is one of the largest companies to join the GS Select program, which currently supports 40 independent advisory and broker / dealer firms, according to a statement.

Last year, the bank announced its partnership with Fidelity Investment’s clearing and custody business, which caters to smaller brokerage and wealth management firms.

Reporting by Elizabeth Dilts; Editing by Himani Sarkar


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