Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

LPL Financial Agrees to $6 Million Settlement with FINRA Over Regulation Best Interest Lapses

Posted on March 1st, 2024 at 11:34 AM
LPL Financial Agrees to $6 Million Settlement with FINRA Over Regulation Best Interest Lapses

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

LPL Financial has agreed to pay over $6 million to settle charges by FINRA, alleging violations of Regulation Best Interest in recommending trades involving certain listed business development companies.

The settlement includes a $5.5 million fine, restitution of $651,374.51, and a censure. While not admitting or denying the charges, LPL was accused of failing to properly oversee the suitability of certain transactions conducted by its registered representatives between January 2012 and August 2019.

As reported by ÍøÆØ³Ô¹ÏalthManagement.com, FINRA claimed that LPL repeatedly failed to properly oversee the suitability of certain transactions between January 2012 and August 2019. LPL did not generate exception reports to identify potential sales practice violations, failed to collect necessary investment profile information, and sent letters misstating sales charges to about 11,300 customers. Additionally, the firm's supervisory system did not reasonably alert supervisors to over-concentrated investments in listed BDCs, leading to losses for 16 customers.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.