LPL FINED $950,000.00 FOR FAILING TO SUPERVISE ITS SALES OF
ALTERNATIVE INVESTMENTS

The Financial Industry Regulatory Authority (“FINRA”) recently fined LPL Financial Services LLC $950,000.00 for failures to supervise its sales of alternative investments from January 2008 through July 1, 2012.  In addition, FINRA issued findings that LPL failed to properly train its supervisory personnel concerning state suitability requirements imposed when selling such investments. As outlined in FINRA’s March 24, 2013 News Release, sales of alternative investments are subject to not only traditional suitability regulations and laws,  but are further subject to concentration limits set by various states.  FINRA determined that LPL failed to train personnel concerning compliance with the laws of various states.  Instead, during part of the relevant time, LPL relied upon automated supervisory systems that contained flawed programming and were also outdated.  The alternative investments included non-traded REITS, business development companies (BDCs), real estate limited partnerships, oil and gas limited partnerships, and other illiquid pass-through securities.

A full copy of FINRA’s disciplinary letter of Acceptance, Waiver and Consent against LPL can be found on FINRA’s website, or by following the prompts after clicking on FINRA’s Disciplinary Actions Online database. 

• SEC Charges Three Senior Executives in Two Actions Alleging Massive Bribery Scheme Involving Indian Energy Companies Adani Green and Azure Power
• SEC Charges BIT Mining with FCPA Violations in Connection with Bribery Scheme to Influence Members of Japanese Parliament
• SEC Charges Invesco Advisers for Making Misleading Statements About Supposed Investment Considerations
• JP Morgan Affiliates to Pay $151 Million to Resolve SEC Enforcement Actions
• SEC Announces New Members of Small Business Capital Formation Advisory Committee
• SEC Adopts Rule Amendments and New Rule to Improve Risk Management and Resilience of Covered Clearing Agencies
• SEC Small Business Advisory Committee to Discuss Approaches to Venture Capital Fundraising and Challenges Facing Emerging Fund Managers
• SEC Charges Four Companies With Misleading Cyber Disclosures
• SEC Charges Advisory Firm WisdomTree with Failing to Adhere to Its Own Investment Criteria For ESG-Marketed Funds
• SEC Division of Examinations Announces 2025 Priorities

Error: Feed has an error or is not valid

Error: Feed has an error or is not valid