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.
Q4 Global Commercial Insurance Rates Drop 4%, in 6th Quarterly Decline: Marsh 
‘Structural Shift’ Occurring in California Surplus Lines 
AIG Underwriting Income Up 48% in Q4 on North America Commercial 
AIG’s Zaffino: Outcomes From AI Use Went From ‘Aspirational’ to ‘Beyond Expectations’ 
