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ÍøÆØ³Ô¹Ïlls Fargo and LPL Financial Settle SEC Charges Over Blue Sheet Reporting Errors

Posted on January 20th, 2025 at 3:36 PM
ÍøÆØ³Ô¹Ïlls Fargo and LPL Financial Settle SEC Charges Over Blue Sheet Reporting Errors

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The Securities and Exchange Commission (SEC) announced settlements with ÍøÆØ³Ô¹Ïlls Fargo Clearing Services and LPL Financial, each agreeing to pay a $900,000 penalty for failing to provide complete and accurate securities trading information, also known as electronic blue sheet data. According to ThinkAdvisor, the SEC found that both firms submitted blue sheet data containing missing or inaccurate information about securities transactions over several years.

From July 2018 to February 2023, ÍøÆØ³Ô¹Ïlls Fargo made 11,195 blue sheet submissions to the SEC with at least 15 types of errors, affecting data for more than 10.6 million transactions. Similarly, LPL Financial’s submissions between July 2018 and May 2021 contained at least 10 types of errors, impacting data for over 399,000 transactions.

Both firms undertook remedial efforts, including hiring outside consultants and enhancing their blue sheet reporting systems and governance frameworks. ÍøÆØ³Ô¹Ïlls Fargo self-identified and reported all but one of its errors, which influenced the penalty amount, the SEC noted.

The SEC found both firms violated broker-dealer record-keeping and reporting provisions under federal securities laws. ÍøÆØ³Ô¹Ïlls Fargo and LPL admitted the findings in the SEC orders, agreed to be censured, and committed to further improvements.

The Financial Industry Regulatory Authority (FINRA) also reached separate settlements with both firms for related conduct. Representatives told ThinkAdvisor of their cooperation with regulators and noted that the issues did not affect clients or financial professionals.

 

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

Tags: eccleston, eccleston law, sec

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