{"id":5783,"date":"2015-05-06T00:00:00","date_gmt":"2015-05-06T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/05\/lpl_financial_to_pay_117m_fine"},"modified":"2022-05-06T14:54:48","modified_gmt":"2022-05-06T19:54:48","slug":"lpl-financial-to-pay-117m-fine","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-to-pay-117m-fine\/","title":{"rendered":"LPL Financial to Pay $11.7M Fine for Supervisory Failures"},"content":{"rendered":"

The Financial Industry Regulatory Authority Inc. said that LPL Financial (LPLA) must pay $11.7M in fines and restitution for widespread supervisory failures<\/a> involving complex products sales. The self-regulatory organization said that from 2007 up to last month, the firm did not properly supervise certain exchange-traded funds, nontraded real estate investment trusts, and variable annuities. It also did not properly deliver over 14 million trade confirmations to customers and failed to properly supervise communications, including advertising, as well as the consolidated reports used by brokers.<\/p>\n

According to the Letter of Acceptance, Waiver, and Consent, To grow LPL, its wholly-owned brokerage firm subsidiary, LPL Financial Holdings Inc. employed a strategy that included acquiring financial services firms, consolidating them with the broker-dealer, and bringing in more registered representatives. Unfortunately, said the SRO, the firm failed to dedicate enough resources to allow LPL to fulfill its supervisory duties.<\/p>\n

As just one example, LPL did not have a system for either monitoring the duration of time customers held securities in accounts or enforcing concentration limits on complex products. Its system for reviewing trading activities in accounts had numerous deficiencies. Also, LPL did not submit trade confirmations in over 67,000 customer accounts.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Financial Industry Regulatory Authority Inc. said that LPL Financial (LPLA) must pay $11.7M in fines and restitution for widespread supervisory failures involving complex products sales. The self-regulatory organization said that from 2007 up to last month, the firm did not properly supervise certain exchange-traded funds, nontraded real estate investment trusts, and variable annuities. It […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3739,3877],"tags":[],"class_list":["post-5783","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-finra","category-lpl-financial"],"yoast_head":"\nLPL Financial to Pay $11.7M Fine for Supervisory Failures — Investor Lawyers Blog — May 6, 2015<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority Inc. said that LPL Financial (LPLA) must pay $11.7M in fines and restitution for widespread supervisory — May 6, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-to-pay-117m-fine\/\" \/>\n<meta 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