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

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive



If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.


August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.

August 10, 2022
UBS Wealth Group’s Legal Costs Skyrocket in Q2

UBS Wealth’s litigation expenses have substantially spiked in the second quarter as the firm has faced a host of investor complaints and regulatory probes into UBS’ volatile Yield Enhancement Strategy (YES).

August 9, 2022
UBS Wealth Relying on Lending as Client Assets Dip

UBS Wealth Management is relying on loan growth and increasing interest rates amidst a quarter that the company has categorized as “one of the most challenging periods for investors in the last 10 years”, according to UBS CEO Ralph Hamers.