LPL Fined $26 Million by the North American State Securities Administrators Association Over Advisors’ Sales of Unregistered Securities

Posted on May 7th, 2018 at 4:03 PM
LPL Fined $26 Million by the North American State Securities Administrators Association Over Advisors’ Sales of Unregistered Securities

From the Desk of Jim Eccleston at Eccleston Law LLC:

An investigative task force led by the North American State Securities Administrators Association (NASSA) has reached an agreement with LPL regarding the sales of unregistered, non-exempt securities by the broker-dealer to its clients. According to the task force, LPL will pay $26 million to 52 U.S. states and jurisdictions, plus review its past practices of its advisors’ sales of unregistered securities. 

Moreover, according to regulators, since at least 2006, LPL was negligent in canceling certain third-party services critical for compliance. LPL failed to maintain adequate supervisory systems to prevent the sales of the unregistered, non-exempt equity or fixed-income securities.

Investors who purchased unregistered securities that were non-exempt from registration may have a cause of action under state securities laws and other causes of action to rescind those purchases.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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