LPL Financial Fined $11.7 Million for Supervisory Failures

Posted on May 12th, 2015 at 11:51 AM
LPL Financial Fined $11.7 Million for Supervisory Failures

FINRA ordered LPL Financial to pay $11.7 million in fines and restitution for the firm’s supervisory failures related to sales of complex products.

According to FINRA, from 2007 to April 2015, LPL failed to properly supervise sales of certain investments, including certain exchange traded funds, variable annuities and nontraded REITs, and also failed to properly deliver more than 14 million trade confirmations to customers. LPL did not have a system in place to monitor the length of time customers held securities in their accounts or to enforce limits on concentrations of those complex products in customer accounts.

LPL’s supervisory breakdowns resulted from a sustained failure to devote sufficient resources to compliance programs integral to numerous aspects of its business.  For instance, the firm failed to generate proper anti-money laundering alerts, and did not deliver trade confirmations in 67,000 customer accounts.

FINRA also dinged the firm for failing to supervise advertising and other communications, including brokers’ use of consolidated reports.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, lpl financial, finra

Return to Archive



You guys are good!

Mike L.


October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.