LPL Financial LLC must pay a total of $9 million for significant email system failures and making misstatements to Wall Street’s watchdog, the regulator said on Tuesday.
LPL, an affiliate of LPL Financial Holdings Inc., agreed to a fine of $7.5 million and will establish a $1.5 million fund to compensate brokerage customers potentially affected by email violations, according to a settlement with the Financial Industry Regulatory Authority. The firm neither admitted nor denied FINRA’s charges, according to the settlement.
Securities industry rules require brokerages to store and review emails for a certain period to ensure compliance with procedures and prevent potential wrongdoing.
An LPL spokesman was not immediately able to comment.
LPL disclosed to shareholders in April that it was discussing a settlement with FINRA related to email violations.
The settlement coincides with an overhaul of compliance procedures at LPL following a flurry of regulatory complaints about sales abuses. They include LPL’s $2.5 million settlement with Massachusetts’ securities regulator for failing to supervise brokers who sold investments in non-traded real estate investment trusts.
Topics Agencies
Was this article valuable?
Here are more articles you may enjoy.
How One Fla. Insurance Agent Allegedly Used Another’s License to Swipe Commissions 
Nine-Month 2025 Results Show P/C Underwriting Gain Skyrocketed 
Insurance Issue Leaves Some Players Off World Baseball Classic Rosters 
‘Structural Shift’ Occurring in California Surplus Lines 
