{"id":3096,"date":"2014-03-26T00:00:00","date_gmt":"2014-03-26T04:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/finra-fines-lpl-financial-over-alternative-investments\/"},"modified":"2017-12-22T14:29:26","modified_gmt":"2017-12-22T19:29:26","slug":"finra-fines-lpl-financial-over-alternative-investments","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/finra-fines-lpl-financial-over-alternative-investments\/","title":{"rendered":"FINRA Fines LPL Financial Over Alternative Investments"},"content":{"rendered":"<\/p>\n

LPL Financial, the self-proclaimed \u201cnation\u2019s largest independent broker-dealer\u201d was recently fined $950,000 by securities regulator FINRA for allegedly failing to supervise<\/a> its brokers that sold alternative investments<\/a>.\u00a0 In a letter of Acceptance, Waiver and Consent (“AWC”), signed March 24, 2014, LPL Financial (\u201cLPL\u201d) settled FINRA\u2019s charges that it failed to implement an adequate supervisory system for the sale of alternative investments<\/a>.<\/p>\n

FINRA\u2019s complaint focuses on LPL\u2019s failure to have a suitable system in place to identify and determine whether purchases of alternative investments<\/a>, such as equipment leasing programs, real estate limited partnerships, hedge funds, and managed futures, caused its customers\u2019 accounts to be unsuitably concentrated in these types of investments.\u00a0 The allegations further state that LPL\u2019s three-tiered supervisory system had deficiencies at each tier that allowed its customers to become overconcentrated<\/a> in alternative investments<\/a> <\/b>from January 1, 2008 through July 1, 2012.<\/p>\n

Alternative investments<\/a> <\/b>are complex, high-commission, investments frequently sold by investment banks as an alternative to investing in the stock market.\u00a0 The Securities and Exchange Commission issued a press release in 2014 to remind financial advisors of the compliance requirements related to the recommendation of alternative investments<\/a> <\/b>to investors.\u00a0 Despite this, few retail investors are advised that alternative investments<\/a> can be illiquid, speculative, and rife with conflicts of interest<\/a>.\u00a0 Unfortunately for investors, the $950,000 fine will not be paid to the victims.\u00a0 Instead, investors who have been damaged may pursue FINRA arbitration claims to recover damages.<\/p>\n

Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

LPL Financial, the self-proclaimed \u201cnation\u2019s largest independent broker-dealer\u201d was recently fined $950,000 by securities regulator FINRA for allegedly failing to supervise its brokers that sold alternative investments.\u00a0 In a letter of Acceptance, Waiver and Consent (“AWC”), signed March 24, 2014, LPL Financial (\u201cLPL\u201d) settled FINRA\u2019s charges that it failed to implement an adequate supervisory system […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[598,607,588],"tags":[448,499,131,567,290],"class_list":["post-3096","post","type-post","status-publish","format-standard","hentry","category-alternate-investments","category-failure-to-supervise","category-finra-arbitration","tag-alternative-investments","tag-failure-to-supervise-2","tag-finra-arbitration-2","tag-overconcentration","tag-securities-arbitration"],"yoast_head":"\nFINRA Fines LPL Financial Over Alternative Investments — Securities Arbitration Lawyers Blog — March 26, 2014<\/title>\n<meta name=\"description\" content=\"LPL Financial, the self-proclaimed \u201cnation\u2019s largest independent broker-dealer\u201d was recently fined $950,000 by securities regulator FINRA for allegedly — March 26, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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