FINRA Levies $250,000 Fine Against LPL Financial

FINRA also orders cease and desist after failure to abide by Massachusetts state regulation on senior financial designations

FINRA fined LPL Financial LLC a total of $250,000 on July 10 after allegations that the firm failed to establish or enforce supervisory procedures that complied with Massachusetts’ regulations. The regulations in question went into effect in 2007 and concern the use of “senior-specific” titles in the securities industry.

The regulation in question states that a broker may only use a title suggesting that he or she is specially trained to work with investors aged 65 or older if the broker has legitimate accreditation recognized by the Secretary of the Commonwealth of Massachusetts.

Yet stockbrokers frequently claim to have titles or degrees which make them better qualified to service accounts for elderly clients. However, many of these titles require little or no additional training to earn and merely serve as marketing tools for the advisors who earn them.

For allegedly failing to abide by the regulation, LPL Financial was fined, censured and issued a cease-and-desist letter. These sanctions are the result of only the most recent of 53 regulatory disclosure events for the firm since its inception.

Almost as recent was an allegation by FINRA that LPL Financial charged customers higher fees on certain mutual funds and did not grant them the available sales charge waivers. On July 6, the firm was required to pay $5.72 million in restitution to these customers, according to FINRA.

Earlier this year, the firm was censured and fined $10 million as a result of allegations that it failed to implement adequate policies for surveying customer trading activity and that the system that was in place experienced technical failings that the firm is responsible for, according to FINRA.

Of the firm’s 53 regulatory disclosures, four have taken place in 2015 alone, resulting in fines and restitution of nearly $16 million. In 2014, that number was more than $4.6 million, and in 2013, more than $7.7 million – and that’s only taking into account the regulatory events in which the firm was charged by FINRA. Since 2012, the firm has also been made to pay nearly $1 million in awards toward those who alleged breach of fiduciary duty and other stockbroker misconduct.

LPL Financial, which is registered in 53 U.S. states and territories, has its main office in Boston.

If you are an investor who has suffered financial losses at the hands of someone at LPL Financial or any other financial advising firm, you may be eligible to recover your losses through securities arbitration.

Acting quickly and turning to the right securities fraud attorney with proven expertise in recovering lost funds may be key to your success in your case. At Silver Law Group you’ll find experienced securities attorneys committed to helping investors recover losses they may experience due to stockbroker negligence or misconduct. Our attorneys represent investors like you nationwide.

When you contact us, you can expect a complimentary consultation and a case handled on a contingent-fee basis, meaning you don’t pay legal fees unless we successfully win your case.