• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • About
  • Advertise
  • Submit News
  • Contact Us

Capital Soup

Florida News Straight From the Source

  • Soup Du Jour
  • People
  • Government
  • Campaign
  • Business
  • Education
  • Insights
  • Video
You are here: Home / Government / OFR to Participate in a $26 Million Multi-State Settlement with LPL Financial LLC

OFR to Participate in a $26 Million Multi-State Settlement with LPL Financial LLC

Posted on November 16, 2018

The Florida Office of Financial Regulation today announced that the agency will participate in a settlement with LPL Financial LLC to repurchase from investors certain securities sold since October 2006 and to pay administrative penalties of $499,000 to Florida upon entering the final order.

Interim Commissioner Pamela Epting said, “The Florida Office of Financial Regulation is committed to protecting Floridians and will continue to work with our partners in other states to hold financial services businesses accountable.”

The settlement stems from an investigation led by state securities regulators from Alabama and Massachusetts regarding the failure to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to its customers.

In July 2017, the North American Securities Administrators Association (NASAA), of which the Florida Office of Financial Regulation is a member, established a task force with Massachusetts and Alabama as lead states to investigate LPL’s failure to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to its customers. LPL fully cooperated with the NASAA task force.

State securities regulators concluded that LPL offered and sold unregistered, non-exempt securities and failed to reasonably supervise the flow of information to ensure full and proper compliance with state securities registration requirements.

While no evidence was found of willful, reckless, or fraudulent conduct by LPL, investigators did find that the firm failed to maintain adequate systems to reasonably supervise agents, staff, and employees to prevent the sale of unregistered, non-exempt securities. LPL failed to invest sufficient and appropriate resources in personnel, expertise, systems, and operations to adequately comply with state securities registration statutes, rules, and regulations.

In addition to an administrative penalty, the settlement calls for LPL to offer to repurchase from investors securities held in LPL accounts determined to have been unregistered, non-exempt equity or fixed-income securities sold since October 1, 2006. Each offer also shall include 3 percent simple interest per year.

View the Final Order.

The Florida Office of Financial Regulation provides regulatory oversight for Florida’s financial services providers. Our mission is to protect Floridians, promote a safe and sound financial marketplace, and contribute to the growth of Florida’s economy with smart, efficient and effective regulation of the financial services industry.
Share this article! Share on FacebookShare on Twitter

Filed Under: Government Tagged With: Florida Office of Financial Regulation, Multi-State Settlement

Primary Sidebar

    Submit News    

Miya’s Law, a Bill Enhancing Renter Protections, Signed into Law

“Miya’s Law,” SB 898, sponsored by Senator Linda Stewart (D – Orlando) and Representative Robin Bartleman (D – … [Read More...] about Miya’s Law, a Bill Enhancing Renter Protections, Signed into Law

House Democrats Respond to SCOTUS Overturning Roe v. Wade

Six Justices of the United States Supreme Court overturned decades of precedent today with their decision to … [Read More...] about House Democrats Respond to SCOTUS Overturning Roe v. Wade

The Florida Department of Economic Opportunity Announces $30 Million Available to Florida Rural Communities for Economic Development

The Florida Department of Economic Opportunity (DEO) today announced $30 million in available funds for … [Read More...] about The Florida Department of Economic Opportunity Announces $30 Million Available to Florida Rural Communities for Economic Development

Keep in Touch

  • Email
  • Facebook
  • Twitter

Newsletter signup

Stay in the loop! Subscribe to our weekly newsletter to receive a brief recap of the week's most popular stories.

Footer

News

  • Soup Du Jour
  • People
  • Government
  • Campaign
  • Business
  • Education
  • Insights
  • Video

About Us 

  • About
  • Advertise
  • Submit News
  • Contact Us

Keep in Touch

  • Email
  • Facebook
  • Twitter

Copyright © 2021
Terms & Conditions

© Copyright 2022 Capital Soup · All Rights Reserved ·