LPL Financial to pay $1.1 million
According to reports today, the Massachusetts Securities Division has fined LPL Financial $1.1 million for allegedly failing to properly register agents in Massachusetts and timely file certain reportable events.
For the past six years, LPL reportedly violated securities laws by reportedly having 651 agents who were not registered in the state of Massachusetts. Further, the firm allegedly failed to file timely notice of nearly 800 reportable events, including customer complaints, criminal events, regulatory actions, bankruptcies, and judgments or liens.
LPL reportedly agreed to the fine as part of a consent order that also requires a review of the company’s policies and procedures.
This is not the first time that LPL has been in hot water with the state of Massachusetts. Last June, the broker dealer was involved in a $26 million nationwide settlement after regulators found that LPL had been negligent in its duty to supervise its agents and prevent the sale of unregistered securities to its customers over a 12-year period.
The securities division has censured the firm and it has been ordered to cease and desist in violations of state securities laws, in addition to the fine and the review of policies and procedures.
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This information is all publicly available and provided to you by the White Law Group.
Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
We represent investors in FINRA arbitration claims in all 50 states, including Massachusetts. Our attorneys have recovered millions of dollars from many brokerage firms including LPL Financial, in the past.
If you have suffered losses investing with LPL Financial, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
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Tags: FINRA arbitration, LPL Financial Massachusetts, LPL Financial sanctions, LPL Financial William Galvin, Securities Attorney Last modified: June 27, 2019