LPL Ordered to Pay 10M in Fines & 1.7M in Restitution

LPL Financial LLC facing 11.7M in sanctions by FINRA for widespread supervisory failures related to complex product sales, trade surveillance, and trade confirmations delivery. Supervisory failures include the sales of non-traditional exchange-traded funds, certain variable annuity contracts, non-traded real estate investment trusts, and other complex products, as well as failing to monitor and report trades and deliver customers millions of trade confirmations. In addition, FINRA ordered LPL to pay 1.7M in restitution to specific customers who purchased non-traditional ETFs. The firm may pay additional compensation to ETF purchasers pending a review of its ETF systems and procedures. LPL consented to FINRA’s findings.

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