{"id":3012,"date":"2015-06-09T00:00:00","date_gmt":"2015-06-09T04:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/finra-fines-lpl-financial-llc-11-7-million-for-failures-to-supervise-and-monitor-trades\/"},"modified":"2017-12-22T14:09:50","modified_gmt":"2017-12-22T19:09:50","slug":"finra-fines-lpl-financial-llc-11-7-million-for-failures-to-supervise-and-monitor-trades","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/finra-fines-lpl-financial-llc-11-7-million-for-failures-to-supervise-and-monitor-trades\/","title":{"rendered":"FINRA Fines LPL Financial LLC $11.7 Million for Failures to Supervise and Monitor Trades"},"content":{"rendered":"<p><a href=\"https:\/\/www.finra.org\" target=\"_blank\">FINRA<\/a> announced on May 6<sup>th<\/sup> that it censured and fined <a href=\"https:\/\/www.silverlaw.com\/lpl-financial-llc-linsco-private-ledger\/\" target=\"_blank\">LPL Financial LLC <\/a>(\u201cLPL\u201d) $10 million for <a href=\"https:\/\/www.silverlaw.com\/failure-to-supervise.html\" target=\"_blank\">supervisory failures<\/a> in a number of different complex investment areas, including the sales of non-traditional exchange-traded funds (\u201cETFs\u201d), certain <a href=\"https:\/\/www.silverlaw.com\/variable-annuities.html\" target=\"_blank\">variable annuity contracts<\/a>, non-traded real estate investment trusts (\u201cREITs\u201d) and other products, as well as its failure to monitor trades and deliver to customers more than 14 million trade confirmations.\u00a0 Moreover, FINRA ordered LPL to pay $1.7 million in restitution to certain customers who purchased non-traditional ETFs, and the firm may be fined additional compensation to ETF purchasers, pending a review by FINRA of its ETF systems and procedures.<\/p>\n<p>With these sanctions, \u201cFINRA reaffirms that there is little room in the industry for lax supervision and that it will not hesitate to order firms to review and correct substandard supervisory systems and controls,\u201d stated Brad Bennett, Chief of Enforcement at FINRA.<\/p>\n<p>FINRA stated that concerning non-traditional ETFs, LPL did not have a system in place to monitor the length of time that customers held these securities in their accounts, did not enforce its limits on the concentration of the products in customer accounts, and failed to make sure that its brokers were adequately trained on the risks of these products.\u00a0 Additionally, LPL permitted sales of variable annuities without disclosing surrender fees.\u00a0 Furthermore, LPL failed to supervise non-traded REITs by failing to identify accounts for volume sales charge discounts.\u00a0 FINRA determined that LPL\u2019s systems to review trading activity in customer accounts were inundated by many deficiencies including failing to alert for certain high-risk activity.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.silverlaw.com\/blog\/finra-fines-lpl-financial-llc-11-7-million-for-failures-to-supervise-and-monitor-trades\/\"  title=\"Continue Reading FINRA Fines LPL Financial LLC $11.7 Million for Failures to Supervise and Monitor Trades\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>FINRA announced on May 6th that it censured and fined LPL Financial LLC (\u201cLPL\u201d) $10 million for supervisory failures in a number of different complex investment areas, including the sales of non-traditional exchange-traded funds (\u201cETFs\u201d), certain variable annuity contracts, non-traded real estate investment trusts (\u201cREITs\u201d) and other products, as well as its failure to monitor [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[575],"tags":[],"class_list":["post-3012","post","type-post","status-publish","format-standard","hentry","category-exchange-traded-funds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>LPL Financial Account Losses? - Silver Law Group<\/title>\n<meta name=\"description\" content=\"If you invested money with LPL, you may be entitled to recover some or all of your investment losses. 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