#1LPL Financial LPL FINANCIAL HOLDINGS INC. Q1 2023 INVESTOR PRESENTATION April 27, 2023 LPL Financial Member FINRA/SIPC#2Notice to Investors: Safe Harbor Statement Statements in this presentation regarding LPL Financial Holdings Inc.'s (together with its subsidiaries, the "Company") future financial and operating results, growth, priorities, business strategies, capabilities, and outlook, including forecasts and statements relating to the Company's future advisory and brokerage asset levels and mix, organic asset growth, market share, deposit betas, core G&A* expenses (including outlook for 2023), service offerings, operating margin, Gross Profit* benefits, EBITDA* benefits, target leverage ratio, client cash balances and yields, service and fee revenue, investments, acquisitions (including Liquidity & Succession transactions), capital returns, planned share repurchases, and the amount and timing of the onboarding of acquired or recruited brokerage and advisory assets, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of April 27, 2023 and are not guarantees that the expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties and delays in onboarding acquired or recruited assets; changes in general economic and financial market conditions, including retail investor sentiment; changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's strategy and success in managing client cash program fees; changes in the growth and profitability of the Company's fee-based offerings; fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenues; effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and enterprises; whether the retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company; the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations; the costs of settling and remediating issues related to regulatory matters or legal proceedings, including actual costs of reimbursing customers for losses in excess of our reserves; changes made to the Company's services and pricing, and the effect that such changes may have on the Company's Gross Profit* streams and costs; the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements and efficiencies expected to result from its initiatives, acquisitions and programs; and the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after April 27, 2023 and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to April 27, 2023. THIS PRESENTATION INCLUDES DATA AS OF MARCH 31, 2023, UNLESS OTHERWISE INDICATED. LPL Financial Member FINRA/SIPC 2#3Notice to Investors: Non-GAAP Financial Measures Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company's current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed herein are appropriate for evaluating the performance of the Company. Specific Non-GAAP financial measures have been marked with an asterisk (*) within this presentation. Reconciliations and calculations of such measures can be found in the appendix of this presentation. Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles and acquisition costs, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company's core operating performance by excluding non-cash items and acquisition costs that management does not believe impact the Company's ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the appendix of this presentation. Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company's gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company's core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the appendix of this presentation. Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; loss on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company's total expense as calculated in accordance with GAAP. For a reconciliation of the Company's total expense to core G&A, please see the appendix of this presentation. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market- driven and over which the Company cannot exercise control. Accordingly a reconciliation of the Company's outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort. EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. The Company presents EBITDA because management believes that it can be a useful financial metric in understanding the Company's earnings from operations. EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA, please see the appendix of this presentation. Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement ("Credit Agreement") as "Consolidated EBITDA," which is consolidated net income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, including unusual or non-recurring charges and gains, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company's debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the appendix of this presentation. THIS PRESENTATION INCLUDES DATA AS OF MARCH 31, 2023, UNLESS OTHERWISE INDICATED. LPL Financial Member FINRA/SIPC 3#4LPL investment highlights 1 Industry leader in the advisor-mediated marketplace with scale and structural tailwinds 2 Horizontal expansion strategy with a goal of meeting all ~300,000 advisors where they are 3 4 LO 5 Significant capacity to invest in vertical integration capabilities that enhance the advisor value. proposition and drive growth. Resilient business model with natural hedges to market volatility Disciplined expense management, enabling operating leverage 6 Capital-light business model with flexible allocation framework LPL Financial Member FINRA/SIPC#5LPL overview 1 Industry leader in the advisor-mediated marketplace $1.2T+ Assets • Advisor channel: $883B • Enterprise channel: $292B Who we are We serve the advisor-mediated marketplace as the largest independent broker-dealer in the U.S. and a top custodian We provide advisors with the front-, middle- and back-office support they need to serve the large and growing market for comprehensive financial advice #1 Independent Broker-Dealer Financial Planning Magazine Who we serve 21,000+ Advisors Independent Advisors: 12,000+ Independent RIA: ~5,900 (~500 firms) #3 RIA Custodian Cerulli Associates Fortune 500 Company Enterprise Services: 3,500+ (~1,100 enterprises) What we do We serve advisors so they can... o Help their clients achieve life's goals and dreams О Be great entrepreneurs and run thriving businesses We deliver... 。 Value-added capabilities that help advisors provide differentiated experiences for their clients ○ Personalized solutions from flexible and compelling affiliation models, to services that help advisors run extraordinary businesses 。 Liquidity & Succession capabilities for advisors seeking to transition their business Our mission and vision Mission We take care of our advisors so they can take care of their clients Vision Become the leader across the advisor-mediated marketplace LPL Financial Member FINRA/SIPC#6LPL by the numbers Industry-leading scale Total Advisory and Brokerage Assets ($B) Organic Asset Growth Rate Up -2x $1,206 $1,175 $1,111 $628 $764 $903 53% 52% 53% 51% 48% 45% 5.3% 3.7% Up more than 2x 13.2% 8.5% 7.9% 7.4% 1 Industry leader in the advisor-mediated marketplace 13% Financial highlights Gross Profit Contribution 3% 2% 38% Client cash Other asset-based $3.5B+ 22% Advisory fees and commissions Service and Fee Transaction Interest income and other, net 23% 51% Operating margint $14.07 Adjusted EPS*+ 1.34x Leverage ratio(1) 2018 2019 2020 2021 2022 Q1'23 2018 2019 2020 2021 2022 Q1'23 LTM Incl. dividends and interest, less advisory fees Advisory % of Total Advisory and Brokerage Assets Note: Totals may not foot due to rounding † Represents LTM results LPL Financial Member FINRA/SIPC 6#71 Industry leader in the advisor-mediated marketplace We are a market leader with scale advantages and structural tailwinds Growing demand for advice Projected Growth in US Retail Advisor-Mediated Market+ Independent channel gaining share Total U.S. Retail Advisor-Mediated Assets Market leader, with expanded addressable markets+ Traditional Independent Enterprises RIA Employee Channel -2x L i $27T Advisor-Mediated: 5% CAGR ~$20T ~$23T 100% ~$30T ~$30T Other Employee Channels (2): 5% CAGR ~$26T 80% -28% -28% -28% ~$23T ~$20T ~$20T Wirehouses: 60% 2% CAGR -36% -34% -28% 40% 20% Independent Channels (2): 8% CAGR -36% -37% 0% 2017 2018 2019 2020 2025E 2017 2018 2019 2020 † 2021 Cerulli U.S. Retail and Institutional Asset Management Report and Cerulli Lodestar projections. Excludes self-directed market. Estimated market sizing based on 2021 Cerulli reports. See endnote (3) for additional detail. + -44% -3x $12T $13T $7T $4T $5T $4T $5T $1T $1T $3T $3T $3T 2025E 2017 Investor Day 2019 Investor Day 2022 Investor Day LPL Financial Member FINRA/SIPC 7#81 Industry leader in the advisor-mediated marketplace We are providing value-added capabilities that drive our market expansion Horizontal expansion strategy Vertical integration strategy Meet advisors where they are in their practice by providing flexible solutions to help them design the perfect practice for their clients Expand the addressable market through multiple affiliation models, positioning LPL to serve all 300,000 advisors in the advisor-mediated marketplace Deliver advisors end-to-end solutions that are higher quality, better integrated, easier to use, and more cost-efficient ☐ Provide value-added capabilities that empower advisors to: " Give great advice to differentiate & win Operate and run high-performing businesses Flexibility Capabilities LPL Financial Member FINRA/SIPC 8 Foundation: Infrastructure that supports scalability, flexibility, and resiliency is core to our value proposition#91 Industry leader in the advisor-mediated marketplace To execute on our strategic priorities, we organize our efforts into five strategic plays Horizontal expansion strategy Vertical integration strategy PLAY 1 Advisor Channel Empower advisors to create the practice that best fits their aspirations and investors Core Foundation PLAY 3 Provide an industry-leading integrated service and technology platform Value Expansion PLAY 4 Deliver expanded capabilities and products for an enhanced client and investor experience Enterprise Channel PLAY 2 Be the destination and strategic partner of choice for enterprises delivering wealth management PLAY 5 Enablers: Business and Advice Services Deepen participation with clients through services that help them run thriving businesses and deliver enhanced advice Empower the organization to innovate, collaborate, and thrive as we deliver on the promises we make to our clients LPL Financial Member FINRA/SIPC#102 Horizontal expansion Our horizontal expansion strategy enables us to meet all ~300,000+ advisors where they are ~300K advisors in the marketplace: Independent ~55K advisors | $3T Hybrid RIAs ~30K advisors | $3T Independent RIAs ~40K advisors | $4T Employees ~30K advisors | $3T 2019 Traditional independent markets 2020 2021 2022 2023+ Strategic Wealth Provides comprehensive support for breakaway advisors to move to independence • Recruited over $10B in assets since launch(4) Linsco ⚫ Pairs the benefits of independence with the turnkey services of an employee model Enhanced RIA •⚫ Enables RIAs to leverage fully-integrated capabilities, technology, services, and clearing platform Wirehouse ~45K advisors | $9T Enterprises ~95K advisors | $5T Smaller bank / credit unions • Recruited over $5B in assets since launch(4) Core markets New affiliation models † 2021 Cerulli Broker-Dealer Marketplace Private wealth Large financial institutions Broader enterprises Future opportunity LPL Financial Member FINRA/SIPC 10#112 Horizontal expansion We are a market leader in independent advisor channels, with a growing opportunity in the employee channel Growing advisor opportunity Initially, we served advisors in the independent market, where advisors own and operate their businesses • We expand our market leadership through continued enhancements to capabilities and competitive pricing By building on what we already do well, we've unlocked the ability to support a broader set of advisors: Strategic Wealth, Independent Employee and Enhanced RIA • Value proposition Flexible Models ■ Traditional Independent Model Strategic Wealth Independent Employee Enhanced RIA Compelling ongoing economics Transition assistance Organic NNA has driven the majority of advisor asset growth Advisor Assets ($B) Organic Growth -$590 -$700 ~$940 -$880 -$830 11% 9% Differentiated Economics Lower technology costs and fees Complete -$480 Book Ownership Advisors have complete ownership of their practice Technology and operating platform Value-added Integrated products and solutions capabilities 6% Compliance and risk management 4% ■ This combination has expanded our opportunity to serve all segments of the advisor-mediated market Business Portfolio of services to help advisors run thriving businesses 2018 2019 2020 2021 2022 Services Solve the most compelling problems Q1'23 LTM facing advisors To power these new models, we embedded a new layer of services that extends our vertical integration, while also enhancing the overall client experience 6% 5% LPL Financial Member FINRA/SIPC 11#122 Horizontal expansion We provide a compelling value proposition for enterprises to outsource their wealth business Growing enterprise opportunity Value proposition Initially, we focused on financial institutions as our primary opportunity for outsourced wealth management ■ As we onboarded several financial institutions in recent years, we've built a number of new capabilities and continue to innovate based on learnings from those onboardings ■ In doing so, we've exposed new opportunities to serve broader enterprises, expanding our addressable market from $1T to $5T ■ To capitalize on this opportunity, there are additional capabilities we are building Our value proposition resonates for enterprises outsourcing for the first time or looking to upgrade their existing provider Enhanced client experience Accelerate Growth " Attract new advisors Reduce Cost and Risk Seamless Conversion Process " Improved capacity to invest in the business Operational efficiency and technology: outsourced back-and middle-office support • Can lead to 10 point improvement in operating margint Regulatory and risk reduction: transferred regulatory and compliance risk Organic NNA has driven the majority of enterprise asset growth Enterprise Assets ($B) Organic Growth ~$290 -$280 ~$270 -$200 21% 19% -$170 Minimize business disruption through integration and operational support 17% ~$145 Dedicated onboarding team with experience transitioning several large enterprises to our platform Enterprise economics 4% 3% 3% Due to size and asset mix, Gross Profit ROA for Large Enterprises is typically ~15 bps+ " Attractive Margins The lower ROA is factored into our TA underwriting process Given our scale, there is also a lower cost to serve enterprises 2018 2019 2020 2021 2022 Overall, new enterprise partnerships are in-line with our broader margins Q1'23 LTM t 2021 Kehrer Bielan Research & Consulting Report LPL Financial Member FINRA/SIPC 12#133 Vertical integration We are advancing our capabilities to enhance our advisor value proposition and drive growth Investment areas of focus Increasing overall investment levels to drive organic growth... Accelerate Growth Initiatives Annual Core G&A* ($M) Annual Core G&A* Growth Invest in key growth initiatives to drive market expansion and market share 13% 5% 6% 6.5% 8% -$1,192 ~$752 -$868 ~$925 -$999 Enhance Advisor Experience Expand Services Portfolio Strengthen Foundational Infrastructure Invest in key moments of the advisor experience to help them provide great advice and run thriving businesses Invest in incubating, accelerating and launching new services that address advisors' most pressing needs Invest in people, technology and data to strengthen our foundation and support our growth 2018+ 2019* ...with a focus on Technology Core Technology Portfolio Spend ($M) ☐ Capabilities for New Enterprises ($M) -15% 2020 2021 § 2022 §§ -30% CAGR ~$270 ~$210 -$50 CAGR ~$155 -$160 ~$30 Reduce Cost to Serve Invest in automation, digitization and workflow optimization to drive operational efficiencies t Prior to NPH and AdvisoryWorld + § 2019 Core G&A* growth is based on the Company's total 2018 Core G&A* Prior to Waddell & Reed §§ 2022 Core G&A* growth is based on the Company's total 2021 Core G&A* ~$120 2018 2019 2020 ~$220 ~$180 2021 LPL Financial Member FINRA/SIPC (5) 2022 13#143 Vertical integration Our operating platform delivers industry-leading flexibility and integrated workflows Lead with choice and flexibility ■ Promote optionality by integrating a broad array of third-party tools Design and deliver proprietary capabilities as needed Guide advisors to best-fit solutions ■ Leverage unique expertise to match advisors to the right capabilities Guide advisors and enterprises to solutions optimized for cost Streamline integrated workflows Make it easy for advisors to execute seamlessly across our ecosystem Provide access to practice management insights to drive advisor growth Learn and iterate 8 Curated choice HE 8 Integrated workflows Optimized implementation Expert guidance Ideal tech stack LPL Financial Member FINRA/SIPC 14#153 Vertical integration Our Services Group is an innovation engine and driver of organic growth... Deepening our vertical integration Helping advisors and enterprises deliver on their value proposition Asset Management Clearing / Custody Technology, Service, Risk Investment / Advisory Trading and Performance Reporting Traditional Focus of LPL (B/Ds, Custodians, TAMPS) Operating and Growing a Practice Focus of Services Portfolio Client Engagement Driving Organic Growth New Store Sales 1 Enabling $8B in 2022 Recruited AUM(4) Expanding our addressable markets by supporting new affiliation models Attracting new advisor profiles од Be A Great Advisor Comprehensive advice, prospect engagement Run a Thriving Wealth Practice Sales & Marketing, Client Service, Acquisition & Transition Operate a Successful Business Finance & Accounting, Compliance & Risk, Technology & Data Same Store Sales ■ ~2x faster growth among users of our Services Group vs. those that don't Supporting advisors to acquire more new end-clients Giving advisors the tools to deepen relationships with existing clients Retention ■ ~1.5x higher NPS scores among users of our Services Group vs. those that don't I Increasing client asset retention More likely to recommend LPL LPL Financial Member FINRA/SIPC 15#16Planning & Advice Services Business Services Professional Services Business Optimizers 3 Vertical integration ...and has grown to -4,900 subscriptions, with broad adoption across our diverse services • . Digital and employee-powered solutions that help advisors expand the breadth and depth of their advice Helps advisors increase marketplace differentiation while limiting additional complexity and risk Plans can average -$1,000 per month • Current Portfolio: Paraplanning In Development: Tax Planning and High Net Worth Services Services Group Subscriptions Planning & Advice Services* Business Optimizers Professional Services Digital solutions that provide risk mitigation and business continuity services to support practice operations and succession planning 4,944 4,479 236 193 • Lower revenue and lower cost since they deliver digital capabilities • Subscriptions average $100+ per month 3,022 2,955 2,802 Current Portfolio: M&A Solutions, Digital Office, Resilience Plan and Assurance Plan 1,787 In Development: Client Engage 1,410 659 657 • Digital and employee-powered solutions that provide practice management expertise to increase practice-level growth and operational efficiency 1,753 1,484 126 103 1,235 753 556 • • Higher revenue and higher cost due to full support from an LPL team Subscriptions average $1,500+ per month 2018 2019 2020 2021 2022 Q1'23 Current Portfolio: CFO Solutions, Marketing Solutions, Admin Solutions, and Advisor Institute Recently Launched: Bookkeeping and Partial Book Sales Services Group Advisor Count 126 485 1,167 2,266 3,039 3,324 † Subscriptions are the number of advisors using the service LPL Financial Member FINRA/SIPC 16#173 Vertical integration We provide a range of services to advisors, strengthening their business while enhancing our returns We have seen a favorable mix shift in our platforms Gross Profit* ROA Centrally Services Group ~40-45 bps Subscribers Key points Brokerage: Asset growth is driven by Enterprises, where asset mix is primarily brokerage ■ Advisory: Assets are shifting from brokerage to advisory, as end-clients seek greater levels of support from advisors +-5 bps Managed (8) ~35-40 bps bps 15% of advisory up -40% YOY • Brokerage (6) ~15-20 bps +-10 bps Advisory(7) ~25-30 bps (higher ROA when using Corporate platform) AUM mix 53% (up 8% since 2017) +-5 bps Strategic Wealth & Independent Employee ~30-35 bps +~5 AUM mix 47% (down 8% since 2017) assets (up 3% since 2017) Services Provided to Advisors Prior to enterprises, we are shifting towards advisory at ~2%+ per year • ~75% of new client flows are in advisory New Models: Strategic Wealth & Independent Employee models increase support for advisors and expand our addressable market ■ Centrally Managed: Platforms can create additional value within advisory Outsourcing portfolio design and management can free up advisors' time to serve clients and grow their practices Services Group: Support advisors through an expanded set of offerings and a subscription model LPL Financial Member FINRA/SIPC 17#183 Vertical integration We continued to drive solid organic growth with a net new asset growth rate of ~9% for the past year Total Organic Net New Assets (9) ($B) Organic Total NNA+ Organic Annualized Growth Rate* Organic Net New Advisory Assets (10) ($B) Organic Advisory NNA+ Net Brokerage to Advisory Conversions Organic Annualized Growth Rate* Organic Net New Brokerage Assets (10) ($B) Organic Brokerage NNA+ ☐ Net Brokerage to Advisory Conversions Organic Annualized Growth Rate* 7.4% 5.3% 3.7% $56 $23 $33 19.4% $119 13.6% 13.2% $99 $96 11.8% $89 8.5% 9.0% 7.9% 8.1% 7.8% 9.4% 7.7% 6.7% $52 1.7% $50 $49 (0.6%) 0.1% $33 $50 $44 $29 $25 $7 $13 $7 $7 $9 $8 $7 ($2) $0 2018 2019 2020 2021 2022 Q1'23 LTM 2018 2019 2020 2021 2022 Q1'23 ($7) ($7) ($9) ($13) ($8) ($7) LTM 2018 2019 2020 2021 2022 Q1'23 LTM t Prior to Q4 2021, net new assets and net new assets growth rates exclude the assets of Waddell & Reed LPL Financial Member FINRA/SIPC 18#194 Resilient business model with natural hedges to market volatility We benefit from rising market levels and interest rates, and our business model has natural hedges to market volatility Macro benefits Market Levels (S&P 500) Rising market levels drive growth in assets and related revenues including advisory fees, trailing commissions, and sponsor revenues Interest Rates Rising interest rates benefit our client cash yields Annual Gross Profit* Impact ~$10M Per 1% change in market levels ~$40M (11) Per 25bps change in short-term rates Natural offsets to market declines Cash Sweep Balance Increased risk and volatility in the market drives higher cash sweep balances Transaction Volume Increased risk and volatility in the market drives additional portfolio rebalancing activity and higher transaction volumes As equity markets declined in 1H 2022, cash balances increased by ~$13B, which translates to a ~$550M benefit annually(12) Transaction revenue increased ~$7M sequentially in Q1 2022 LPL Financial Member FINRA/SIPC 19#204 Resilient business model with natural hedges to market volatility Our client cash balances are largely operational and as a percent of client assets, have been stable across rate cycles Client Cash Balances (13) ($B) Client Cash percent of Total Assets $64.1 $57.1 $54.6 $48.5 $36.0 $32.5 5.7% 5.8% 5.4% 4.7% 4.6% 4.3% 2018 2019 2020 2021 2022 Q1'23 Fed Funds target (bps) 225 150 0 0 425 475 t Since the start of the last interest rate cycle in Q4'16 . Client cash as a % of assets has averaged ~5%† Our client cash balances are largely operational - Typically small balances used for rebalancing, paying advisory fees, and customer withdrawals - This is reflected in the low client cash balances, which average -5% or $7K per account The primary factor that moves that % of client cash up or down is market sentiment rather than rate seeking behavior When clients are fully deployed in the market, the ratio has gone as low as ~4%, like we saw in 2019 In Q1 2023, cash was 4.6% of client assets, slightly below the long-term average Cash balances declined in the quarter, driven by record net buying of $37B LPL Financial Member FINRA/SIPC 20 20#214 Resilient business model with natural hedges to market volatility We are well positioned to benefit from rising interest rates Client Cash Balances (13) ($B) Annual potential Gross Profit* benefit from rising interest rates Over the last interest rate cycle, our deposit beta averaged -15% IICA Sweep (EOP) CCA (EOP) ■DCA Sweep (EOP) --Average Yield(14) ■Money Market Sweep (EOP) $64.1 • Deposit betas averaged -2.5% over the first 4 hikes, after that betas averaged 25% $2.7 • $57.1 $3.0 $54.6 This cycle, deposit betas were consistent on the first 100 bps, and favorable on subsequent hikes $1.7 $48.5 $11.5 $2.1 $2.6 . This cycle to-date, our deposit betas have averaged -15% $1.5 $16.1 $10.2 $8.2 $36.0 $32.5 $1.2 $9.3 $4.9 $1.3 $1.9 $37.3 $46.8 $5.1 $5.0 Applying historical deposit betas to our current cash balances would yield: ~$40M of Annual Gross Profit* per subsequent rate adjustment, at a -25% deposit beta Estimated Interest Rate Sensitivity based on current balances + Fed Funds rate target range as of April 27, 2023 $24.8 $24.4 $30.0 $39.7 ~$1,295M ~$1,335M 216 bps 215 bps -$1,110M ~$1,155M ~$1,200M ~$1,245M ~$1,065M 172 bps 153 bps 117 bps 75 bps 2018 2019 2020 2021 2022 Q1'23 LTM Average Yields (in bps) ICA Sweep 184 240 133 100 185 239 +350 bps +375 bps +400 bps +425 bps +450 bps +475 bps +500 bps DCA Sweep 183 211 53 24 125 198 MM Sweep 73 73 22 3 30 36 Fed Funds rate target range (bps) 350-375 375-400 400-425 425-450 450-475 475-500 500-525 CCA(15) 188 208 56 15 149 246 Deposit Beta 20% 20% Total Client 172 216 117 75 153 215 Cash 20% Actual 20% 20% 20% 25% Prior Cycle Average Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC 21 † Assumes change based on Q1 2023 end of period cash balances. Gross Profit* benefit is measured relative to a Fed Funds target range of 0 to 25 bps.#224 Resilient business model with natural hedges to market volatility ICA balances declined, driven by record net buying ICA Balances, including Money Market Overflow ($B) Money Market Overflow Balances ■Overflow ICA Balances ■ Variable ICA Balances ■Fixed Rate ICA Balances Fixed Rate ICA Balance % -35% -55% ~50% ~45% -35% -25% Overflow balances provide capacity when balances spike • Historically, when ICA balances exceeded our fixed and variable contract capacity, we utilized money market overflow contracts Given improved bank deposit demand and the launch of CCA, we no longer have any money market overflow balances Variable balances are primarily indexed to Fed Funds · $39.7 $46.8 $43.8 $37.3 $13.9 $2.1 $26.2 $17.7 $1.7 $24.8 $24.4 $0.9 $22.7 $17.6 $12.1 $14.9 Our variable ICA balances declined in the quarter, driven by record net buying of $37B • Most variable balances are indexed to Fed Funds + a spread (~10 to ~15 bps) In the current environment, new variable contracts are averaging Fed Funds plus 15 to 25 bps Fixed rate ICA contracts are laddered over ~6 years • New contracts: In Q1, we added ~$3B of fixed rate balances maturing in 2026-2028, with a ~430 bps yield consistent with the 3-5 year point on the curve when contracted Maturing Contracts ($B) ୮ New contracts added in Q1 2023 as of end of Q1 2023 $20.7 $22.0 $12.3 $12.4 $9.0 $10.6 2018 2019 2020 2021 2022 Q1'23 Maturing Maturing in Q4 $3.4 $2.8 $6.5 $0.4 $5.4 $1.4 $2.5 $3.0 -$0.7 $2.3 $0.8 2023 2024 2025 2026 2027 2028 -330 -250 -330 -330 ~420 ~420 22 Yield (bps) † Weighted average yield across ladder is ~320 bps Note: Yields shown on this page are prior to client deposit rates (~63 bps) and administrator fees (~4 bps). Money market sweep balances are not subject to these costs. LPL Financial Member FINRA/SIPC#235 Disciplined expense management driving operating leverage In 2023, the environment is creating an opportunity to accelerate investments to advance our strategic priorities Long-term cost strategy Deliver operating leverage in core business • Prioritize investments that drive additional growth Drive productivity and efficiency • Adapt cost trajectory as environment evolves 2023 Core G&A* context . Our spending plans are on track with our initial 2023 Core G&A* outlook range of ~12% to -15% year-over-year growth, or $1,335M to $1,370M These investments fall roughly equally into three broad areas, with each driving ~4- 5% growth in Core G&A*: . First, to support core business growth, including investments in technology and capabilities • Second, to support growth in expanded markets and to scale new services Third, to accelerate timing of investments that advance our strategy In Q1, Core G&A* was $326M, or an annualized rate of $1,300M, below the lower end of our 2023 outlook range, giving us flexibility throughout the rest of the year Core G&A* outlook Recent expense trajectory, prior to acquisitions Annual Core G&A* Growth ~12% - ~15% 13% 8% 6% 6.5% 2019 2020 2021 Prior to Waddell & Reed 2022 2023 Outlook Q1 2023 2023 Outlook $326M $1,335M to $1,370M LPL Financial Member FINRA/SIPC 23#246 Capital light business model with flexible allocation framework Our capital management strategy is focused on driving growth and maximizing shareholder value Our capital management principles ☐ Disciplined capital management to drive long-term shareholder value Maintain a strong and flexible balance sheet Flexible debt structure to support capital allocation Prioritize investments to support and drive organic growth Recruiting to drive net new assets Dynamic capital allocation framework • Capital to support advisor growth and advisor M&A Investments in capabilities to attract new advisors and assets ROI Capitalize on opportunistic M&A Remain prepared for attractive opportunities • Facilitate advisor monetization and transitions through Liquidity & Succession solutions Returns and opportunities vary over time M&A Organic growth Share repurchases / Dividends • Return excess capital to shareholders Share repurchases Dividends Use of cash LPL Financial Member FINRA/SIPC 24#256 Capital light business model with flexible allocation framework Due to our improved earnings profile, we lowered our target leverage range Balance Sheet Principles ■ Maintain a strong balance sheet that can absorb market volatility while having the capacity to invest for growth ■ A long-term target leverage range of 1.5x to 2.5x positions our balance sheet well over a range of economic cycles and strikes the right balance between preserving balance sheet strength and investing for growth ■ We are willing to operate temporarily above or below our target range if conditions warrant ■ At the top end of our target leverage range, we have the capacity to deploy up to ~$3.9B (16) of additional capital ■ We maintain a management target of at least $200 million in Corporate Cash (17)(18) Leverage Ratio(1) Prior Management Target Range 2x-2.75x Updated Management Target Range 2.26x 2.15x 2.16x 1.5x – 2.5x 2.05x 1.39x 1.34x 2018 2019 2020 2021 2022 Q1'23 LPL Financial Member FINRA/SIPC 25 25#266 Capital light business model with flexible allocation framework We have significant capital deployment capacity... Capital Deployment Capacity Above target leverage range Up to 2.5x leverage 4 ~$3.3-3.9B ~$1,030M-$1,620M 3 ~$2,240M 2 ~$30M 1 Capital Deployment Capacity Estimate as of Q1 2023 Potential M&A capacity above our target range Willing to temporarily go above our target leverage range for attractive M&A opportunities Incremental M&A leverage capacity within our target range Incremental capital accessible if all other capacity were deployed for M&A at a 6-8x purchase multiple (19) Additional leverage capacity Capital available to deploy up to 2.5x leverage Discretionary cash Corporate cash available to use above $200M management target as of Q1 2023 LPL Financial Member FINRA/SIPC 26#276 Capital light business model with flexible allocation framework ...And we have continued to return capital to shareholders Share Repurchases and Dividends ($M) Share Repurchases Dividends Repurchased >10% of shares over 2018-2019 $2B share repurchase authorization we plan to execute on over ~2 yearst $634 $583 $506 Capital deployment focused on organic growth and M&A $405 $550 $500 $418 $229 $170 $325 $150 $90 $88 $83 $79 $80 $80 $84 2018 2019 2020 2021 2022 Q1'23 LTM Average Diluted 90.6 Share Count (M): 84.6 80.7 81.7 81.3 t Increased share repurchase authorization by $2B as of 09/21/2022, which we started to utilize in 2023 80.9 LPL Financial Member FINRA/SIPC 27#286 Capital light business model with flexible allocation framework We see potential for consolidation given fragmented markets Addressable markets for advisor channel + Traditional Independent RIA Employee Channel $12T $3T $22T $7T Advisor-Oriented Highly fragmented markets create opportunity for additional consolidation + LPLA | -16% Large | -60% Medium -20% Small |~4% $3T ~90 firms LPLA ~15 firms Firm Size | Market Share by Assets | LPLA | ~3% Large | ~67% Medium 19% Small ~11% $7T ~17,600 firms LPLA ~1,200 firms LPL Market Share: ~3% ~35 firms ~2,800 firms ~13,600 firms ~40 firms Traditional Independent + RIA§ LPLA [ <1% Large | ~93% Medium | ~2% Small | ~5% $12T ~710 firms LPLA ~15 firms ~15 firms -680 firms Employee Channel # Growth potential from consolidation ■ Our scale, capabilities, and economics give us competitive advantages in M&A in independent markets and employee channels ■ ■ The independent markets are fragmented with consolidation opportunities Rising cost and complexity is making it harder for smaller players to compete ▪ We believe consolidation can drive value by adding scale, increasing our capacity to invest in capabilities, and creating shareholder value † Estimated market sizing based on 2021 Cerulli reports. See endnote 5 for additional detail. + Traditional Independent and Employee Channel sizing: Small (<$10B); Medium ($10B - <$50B); Large (>$50B) § RIA sizing: Small (<$250M); Medium ($250M - <$1B); Large (>$1B) LPL Financial Member FINRA/SIPC 28#296 Capital light business model with flexible allocation framework Recent acquisitions have added scale in our traditional markets, accelerated our expansion into new markets, and added new capabilities WADDELL &REED Financial, Inc. Traditional Markets LUCIA SECURITIES- 2020 2021 ~$74B of assets transferred ~$1.5B assets ☐ Transaction closed on April 30, 2021 for a ◉ Leading San Diego practice with approximately 20 advisors E.K.RILEY INVESTMENTS. LLC 2020 ALLEN & New Markets fco COMPANY EST. 1932 2019 ~$2B assets ~$3B assets transferred Leading Seattle practice with approximately 35 advisors ☐ Leading Florida practice ■ Affiliated under our employee model BOENNING &SCATTERGOOD ESTABLISHED 1914 2022 ~$4B assets Leading Pennsylvania practice with approximately 30 advisors Affiliated under our employee model Capabilities BlazePortfolio 2020 Industry-leading capabilities ~$12M purchase price ■ Innovative trading and rebalancing capabilities to drive efficiency and scale in advisors' practices ■ purchase price of $300M Large independent broker-dealer network Added to our scale and leadership position Increases our scale and capacity to invest in capabilities, technology, and service to help existing advisors serve their clients and differentiate in the marketplace t National Planning HOLDINGS, INC 2017 ~$70B assets transferred Large independent broker-dealer network ☐ Added to our scale and leadership position Includes both closed and pending acquisitions ☐ ☐ FINANCIAL RESOURCES GROUP Investment Services 2022 ~$40B assets Existing LPL branch office with approximately 800 advisors and 85 financial institutions Leading provider of managed programs for financial institutions, a strategic complement to our existing institutional channel ADVISORYWORLD FINANCIAL TECHNOLOGY 2018 Industry-leading capabilities ~$28M purchase price ■ Leading provider of digital tools for advisors that serves more than 30,000 U.S. financial advisors and institutions LPL Financial Member FINRA/SIPC 29#306 Capital light business model with flexible allocation framework We're delivering new liquidity and succession capabilities for advisors seeking to transition Background: Solving a need in the marketplace ■ ~1/3 of advisors are expected to retire or leave the industry over the next decade - representing $8.5T of AUM+ Historically, advisors' options were limited: Sell to a larger aggregator that may pay an enhanced price, but take control from the advisor • Transact with a local advisor, but often at a below-market price Our response: New Liquidity & Succession solutions New LPL capability to buy practices from advisors seeking a pathway to retirement, looking to free themselves from entrepreneurial burdens, and/ or looking for monetization Economics - Allows advisor to monetize their business through a market-competitive transaction ✓ Support – Empowers advisors through a fully dedicated support model, allowing advisors to rededicate their time and energy to client service ✓ Transition – Transitions ownership of the business to successor advisors over time " Direct acquisition lifecycle example Advisor looking to sunset over 2-5 years Practice in slower-growth mode; risk of sale away from LPL LPL buys advisor's practice Advisor onboarded to Linsco channel LPL oversees the practice LPL supports advisor with industry-leading capabilities and a transition glidepath to succeeding advisor Practice positioned for improved growth within LPL LPL supports the transition to a succeeding advisor LPL trains and fosters the succeeding advisor – positioning them to run a great practice, leveraging the best of LPL ■ Succeeding advisor(s) assume(s) oversight of practice, with ~10-year path to full control of asset Succeeding advisor completes purchase of practice ☐ LPL support of practice extended for ~20 years Building foothold in marketplace with strong initial returns " ■ ■ - Enhancing strategic value – by training successor advisors, deepening the connection with LPL - and reorienting the practice towards growth To date, we have completed 12 deals, with 6 additional expected to close in Q2 2023 Good use of capital - purchase multiples consistent with our M&A framework ~6-8x EBITDA ■ Based on closed transactions and our pipeline, average deal size of ~$10-20M t 2020 Cerulli Report U.S. Advisor Metrics LPL Financial Member FINRA/SIPC 30 Cycle continues#31As we continue to invest and increase our scale, we enhance our ability to drive further growth Invest in differentiated capabilities and a unique advisor experience Invest in advisor value prop Long-term Shareholder Value Attract assets and advisors, and benefit from greater use of our services scale in assets and advisors and EPS Grow earnings a Remain disciplined on expenses and return capital to shareholders LPL Financial Member FINRA/SIPC 31#32We are focused on executing our strategy and delivering results Total Advisory and Brokerage Assets (20) ($B) 13% CAGR Organic Net New Asset Growth Up >2x Key Earnings Growth Drivers Enhanced Advisor Value Proposition (Capabilities, Technology, Service) $1,206 $1,175 $1,111 $903 $764 $628 13.2% 7.9% 8.5% 7.4% 5.3% 3.7% 2018 2019 2020 2021 2022 Q1'23 2018 2019 2020 2021 2022 Q1'23 LTM Gross Profit* ($M) 13% CAGR $3,541 $3,193 $2,455 $2,172 $1,948 $2,103 Adjusted EPS* 21% CAGR $7.17 $7.02 $6.46 $5.33 $14.07 $11.52 2018 2019 2020 2021 2022 Q1'23 2018 2019 2020 2021 2022 LTM Q1'23 LTM Increased Organic NNA (Opportunities in Traditional Markets) New Affiliation Models (Enterprises, Strategic Wealth Services, Independent Employee, Enhanced RIA) Greater Use of our Services (Advisory, Corporate, Centrally Managed, Business, Planning & Advice Services, Advisor Capital Solutions) Drive Operating Leverage in Core Business while Investing for Additional Growth Increased Scale and Capabilities through M&A Excess Capital Deployment (Technology, Advisor Capital, Returning Capital to Shareholders) LPL Financial Member FINRA/SIPC 32#33APPENDIX LPL Financial LPL Financial Member FINRA/SIPC#34Reconciliation Gross Profit* Gross profit* is a non-GAAP financial measure. Please see a description of gross profit under "Non-GAAP Financial Measures" on page 3 of this presentation for additional information. Below is a calculation of gross profit* for the periods presented herein: $ in millions Total revenue Advisory and commission expense Brokerage, clearing and exchange expense Employee deferred compensation (21) Gross Profit Net Income to EBITDA* and Credit Agreement EBITDA* Q1'23 LTM $8,953 2022 $8,601 5,322 89 1 5,325 86 2021 $7,721 5,180 86 2020 $5,872 3,697 71 2019 $5,625 3,388 64 2018 $5,188 3,178 63 $3,541 $3,190 $2,455 $2,103 $2,172 $1,948 EBITDA* and Credit Agreement EBITDA* are non-GAAP financial measures. Please see a description of EBITDA* and Credit Agreement EBITDA* under "Non-GAAP Financial Measures" on page 3 of this presentation for additional information. Below are reconciliations of the Company's net income to EBITDA* and Credit Agreement EBITDA* for the periods presented herein: $ in millions Q1'23 LTM 2022 2021 2020 2019 2018 Net income $1,051 $846 $460 $473 $560 $439 Interest expense on borrowings 138 126 104 106 130 125 Provision for income taxes 332 266 141 153 182 153 Depreciation and amortization 210 200 151 110 96 88 Amortization of other intangibles 91 88 79 67 65 60 EBITDA $1,822 $1,525 $936 $909 $1,033 $866 Credit Agreement adjustments 142 114 214 52 48 103 Credit Agreement EBITDA $1,964 $1,639 $1,151 $961 $1,081 $969 Total debt 2,870 2,738 2,839 2,359 2,415 2,381 Total corporate cash 234 459 Credit Agreement Net Debt $2,636 Leverage Ratio 1.34x $2,279 1.39x 237 $2,602 2.26x 280 $2,079 2.16x 204 300 $2,211 2.05x $2,081 2.15x Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC 34#35Reconciliation Adjusted EPS* and Adjusted Net Income* Adjusted EPS* and adjusted net income* are non-GAAP financial measures. Please see a description of adjusted EPS* and adjusted net income* under "Non-GAAP Financial Measures" on page 3 of this presentation for additional information. Below are the following reconciliations of net income and earnings per diluted share to adjusted net income* and adjusted EPS* for the periods presented herein: $ in millions, except per share data Q1'23 LTM Amount 2022 2021 2020 2019 2018 Per Share Net income / earnings per diluted share $1,051 $13.02 Amount $846 Amortization of other intangibles Acquisition costs Tax benefit 91 1.12 88 Per Share $10.40 1.08 Amount $460 Per Share Amount $5.63 $473 79 0.97 67 Per Share Amount $5.86 $560 0.83 Per Share $6.62 Amount $439 Per Share $4.85 65 0.76 60 0.66 (22) 26 0.32 36 0.44 76 0.93 0.00 0.00 0.00 (31) (0.39) (33) (0.40) (41) (0.51) (19) (0.23) (18) (0.21) (17) (0.19) Adjusted net income / adjusted EPS Average diluted share count $1,137 $14.07 $937 $11.52 $574 $7.02 $521 $6.46 $607 $7.17 $482 $5.33 80.9 81.3 81.7 80.9 85.0 91.0 Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC 35 35#36Reconciliation Core G&A* to Total expense Core G&A* is a non-GAAP financial measure. Please see a description of Core G&A* under "Non-GAAP Financial Measures" on page 3 of this presentation for additional information. Below is a reconciliation of total expense to Core G&A* and of Core G&A, prior to the impact of the acquisitions of Waddell & Reed, NPH, and AdvisoryWorld for the periods presented herein: $ in millions Total expense Advisory and commission Depreciation and amortization Interest expense on borrowings Brokerage, clearing and exchange Amortization of other intangibles Employee deferred compensation (21) Loss on extinguishment of debt Total G&A Acquisition costs (22) Promotional (ongoing) (22) Employee share-based compensation Regulatory charges Core G&A $ in millions Core G&A NPH-related Core G&A AdvisorWorld-related Core G&A Waddell & Reed-related Core G&A Total Core G&A prior to acquisitions Note: Totals may not foot due to rounding Q1'23 LTM $7,570 2022 $7,489 2021 $7,120 2020 $5,246 2019 $4,882 2018 $4,597 5,322 5,325 5,180 3,697 3,388 3,178 210 200 151 110 96 88 138 126 104 106 130 126 89 86 86 71 64 63 91 88 79 67 65 60 1 24 3 $1,719 $1,665 $1,494 $1,194 $1,136 $1,082 368 354 288 208 206 209 26 36 76 55 50 42 32 30 23 33 33 29 29 32 32 $1,237 $1,192 $1,058 $925 $868 $819 2021 2018 $1,058 $819 65 2 59 $999 $752 LPL Financial Member FINRA/SIPC 36#37€2 (1) (2) (3) Endnotes The Company calculates its leverage ratio as total debt less total corporate cash, divided by Credit Agreement EBITDA for the trailing twelve months. Other employee channels include National & Regional B/D, Insurance B/D, and Retail bank B/D channels. Independent channels include independent B/D, Hybrid RIA, and Independent RIA channels. Estimated market sizing based on 2021 Cerulli reports, unless otherwise noted. Below are reconciliations of each market: Traditional Market Independent B/D RIA Market Hybrid RIA Employee Channel National & Regional B/D Wirehouse Independent RIA (-) Adj. to avoid double-counting Boutique B/D Enterprise Channel Insurance B/D Bank Trust Product Manufacturers* Boutique B/D* Retail bank B/D (-) Adj. to Retail bank B/D: Chase & Wells Fargo (4) (5) (6) (7) (8) (9) * Estimated market sizing based on LPL estimates. Product Manufacturers defined as fund companies with an adjacent traditional wealth management business serving individuals. Boutique B/D defined as National & Regional B/Ds with less than $50B AUM, which we view as an Enterprise market opportunity Represents the estimated total advisory and brokerage assets expected to transition to the Company's broker-dealer subsidiary, LPL Financial LLC ("LPL Financial"), associated with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate. 2022 is prior to M&A- and enterprise-related onboarding spend in technology. Consists of brokerage assets serviced by advisors licensed with LPL Financial. Consists of total assets on LPL Financial's corporate advisory platform serviced by investment advisor representatives of LPL Financial or Allen & Company of Florida, LLC ("Allen & Company") and total assets on LPL Financial's independent advisory platform serviced by investment advisor representatives of separate investment advisor firms ("Independent RIAS"), rather than of LPL Financial. Consists of advisory assets in LPL Financial's Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios, and Guided Wealth Portfolios platforms. In April 2020, the Company updated its definition of net new assets to include dividends plus interest, minus advisory fees. Unless otherwise noted, net new assets figures for periods prior to Q2 2020 appearing in this presentation have been recast using the updated definition. (10) Consists of total client deposits into advisory or brokerage accounts (including advisory or brokerage accounts serviced by Allen & Company advisors) less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively. Annualized growth is calculated as the current period organic net new advisory or brokerage assets divided by preceding period total advisory or brokerage assets, multiplied by four. (11) Assumes change based on Q1 2023 end of period ICA balances, presented on page 21. (12) Annual benefit measured in total revenue. Based on variable client cash balances indexed to Fed Funds. (13) During the second quarter of 2022, the Company updated its definition of client cash balances to include client cash accounts and exclude purchased money market funds. Client cash accounts include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. Prior period disclosures have been updated to reflect this change as applicable. (14) Calculated by dividing revenue for the period by the average balance during the period. (15) Calculated by dividing interest income earned on cash held in the Client Cash Account (CCA) for the period by the average CCA balance, excluding cash held in CCA that has been used to fund margin lending, during the period. The remaining cash is primarily held in cash segregated under federal or other regulations in the condensed consolidated balance sheets. (16) Calculated using the summation of the following components: (1) corporate cash available to use above $200M management target range, (2) the additional leverage capacity above current leverage times trailing twelve month Credit Agreement EBITDA, and (3) the additional leverage capacity from an M&A opportunity at a 6x purchase multiple for which capital was deployed up to 2.5x leverage. (17) Management's corporate cash target covers approximately 18 months of principal and interest due on corporate debt. (18) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Financial, Financial Resources Group Investment Services, LLC and The Private Trust Company, N.A., in excess of the capital requirements of the Company's Credit Agreement (which, in the case of LPL Financial and Financial Resources Group Investment Services, LLC, is net capital in excess of 10% of their aggregate debits, or five times the net capital required in accordance with Exchange Act Rule 15c3-1) and (3) cash and equivalents held at non-regulated subsidiaries. (19) Additional leverage capacity is assumed to be generated by acquired EBITDA* from an M&A opportunity at a 6-8x purchase multiple for which capital was deployed up to 2.5x leverage. (20) Consists of total advisory and brokerage assets under custody at LPL Financial and Waddell & Reed, LLC. As of March 31, 2023, there were no assets under custody at Waddell & Reed. (21) During the first quarter of 2023, the Company updated its presentation of employee deferred compensation to be consistent with its presentation of advisor deferred compensation. As a result, gains or losses related to market fluctuations on advisor and employee deferred compensation plans are presented in the same line item as the related increase or decrease in compensation expense for purposes of Management's Statements of Operations. This change has not been applied retroactively as the impact on prior periods was not material. (22) Acquisition costs include the costs to setup, onboard and integrate acquired entities. The below table summarizes the primary components of acquisition costs for the periods presented: $ in millions Professional services Compensation and benefits Promotional Other Acquisition costs Q1'23 LTM $8.0 2022 $12.0 2021 $18.7 15.8 20.6 36.4 0.6 2.3 14.3 1.5 1.3 7.0 $25.9 $36.2 $76.4 LPL Financial Member FINRA/SIPC 37 34