LPLA

LPL Financial

DOUBTFUL — SCREEN DOES NOT PASSstock

Is LPLA Halal?

Financial services — enables conventional investment and lending.

What You Should Know

LPL Financial provides clearing and services to financial advisors. Enables riba-based products and services. Its March 2026 Form 10-Q reports $18,835.241 million of assets, $7,182.102 million of corporate debt, $2,905.947 million of cash, $100.322 million of investment securities, $6,067.378 million of receivables and $4,938.434 million of quarterly revenue. Debt/assets is 38.13% and receivables-plus-cash/assets is 47.64%; disclosed interest income is 0.91%, while the broker-dealer's conventional product and margin-lending mix remains a binding qualitative concern.

⚠️ Concerns

  • Facilitates riba-based financial services
  • Interest-based products
  • Advisor and client loans are material financing receivables
  • Corporate debt/assets exceeds the examined 33.333% limits
  • Brokerage, clearing, margin, annuity and mutual-fund contracts require scholar review

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
38.13%Above limit
Below 33.333% under FTSE Yasaar

7,182.102 / 18,835.241

Cash + interest-bearing securities / assets
15.96%Within limit
Below 33.333% under FTSE Yasaar

3,006.269 / 18,835.241

Receivables + cash / assets
47.64%Within limit
Below 50% under FTSE Yasaar

8,973.325 / 18,835.241

Non-compliant income / revenue
0.91%Within limit
No more than 5% under FTSE Yasaar

45.18 / 4,938.434

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 38.13% and receivables-plus-cash/assets is 47.64%, above the examined limits; the conventional broker-dealer business also fails.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 38.13% and receivables-plus-cash/assets is 47.64%, above the examined MSCI limits; the conventional financial-services business also fails.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is above the examined Malaysia 33% limit and the broker-dealer business fails; this is not an official SAC classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A properly licensed and reproducible historical market-cap series is not stored; the asset-based and core-business failures are independently documented.

Business-activity disclosure

LPL is a conventional broker-dealer and registered investment-adviser platform providing advisory, commission, clearing, custody, margin and advisor-loan services. Its core product and financing model facilitates conventional interest-bearing and non-screened investment contracts.

Limitation: The filing disaggregates advisory, commission, asset-based, service, transaction and interest revenue but does not classify every product or contract by Sharia status; using total revenue as a conservative core-financial-services proxy avoids inventing a smaller prohibited numerator.

Purification

LPL fails at the conventional broker-dealer business-activity level; the disclosed $45.180 million of net interest income is evidence for the screen rather than a standalone purification prescription.

Inputs, assumptions and primary sources
  • Amounts are USD millions from LPL Financial Holdings' March 31, 2026 Form 10-Q.
  • Corporate debt and other borrowings, net are $7,182.102 billion; operating leases and client payables are excluded from interest-bearing debt.
  • Cash includes $1,024.459 million of cash and equivalents, $1,655.723 million segregated under regulations and $225.765 million restricted cash. Investment securities of $100.322 million are retained conservatively despite mixed trading composition.
  • Receivables combine clients $866.500 million, brokers and clearing organizations $100.003 million, advisor loans $3,741.085 million and other receivables $1,359.790 million.
  • Total revenue is $4,938.434 million and disclosed net interest income is $45.180 million.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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