0001007444-16-000071.txt : 20161213
0001007444-16-000071.hdr.sgml : 20161213
20161213142523
ACCESSION NUMBER: 0001007444-16-000071
CONFORMED SUBMISSION TYPE: TA-1/A
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20161212
DATE AS OF CHANGE: 20161213
EFFECTIVENESS DATE: 20161222
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: LPL Financial LLC /TA
CENTRAL INDEX KEY: 0001007444
IRS NUMBER: 952834236
STATE OF INCORPORATION: CA
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: TA-1/A
SEC ACT: 1934 Act
SEC FILE NUMBER: 084-05637
FILM NUMBER: 162048575
BUSINESS ADDRESS:
STREET 1: 4707 EXECUTIVE DRIVE
CITY: SAN DIEGO
STATE: CA
ZIP: 92121
BUSINESS PHONE: 617-423-3644
MAIL ADDRESS:
STREET 1: 75 STATE STREET, 22ND FLOOR
CITY: BOSTON
STATE: MA
ZIP: 02109
FORMER COMPANY:
FORMER CONFORMED NAME: LPL Financial CORP /TA
DATE OF NAME CHANGE: 20080116
FORMER COMPANY:
FORMER CONFORMED NAME: LINSCO PRIVATE LEDGER CORP /TA
DATE OF NAME CHANGE: 19960208
TA-1/A
1
primary_doc.xml
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TA-1/A
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0001007444
084-05637
SEC
LPL Financial LLC
LPL Financial Corporation
008698
4707 Executive Drive
San Diego
CA
CALIFORNIA
92121-3091
true
75 State Street, 22nd Floor
Boston
MA
MASSACHUSETTS
02109
800-877-7210
false
false
false
false
Other
LLC
LPL Holdings, Inc.
1989-04-01
Managing Member
Parent Company
Mark Robert Helliker
2008-08-01
Managing Director
Client Support Services
2015-08-01
Robert Joseph Moore
2012-05-01
President and Director
Advisor & Institution Solutions
2015-03-16
Sharyn J. Handelsman
2014-01-01
Managing Director
Chief Compliance Officer, Brokerage
2015-06-12
George Burton White
2007-11-01
Managing Director
Chief Investment Officer
Dan Hogan Arnold, Jr.
2012-05-01
President
President
David Paul Bergers
2013-08-01
Managing Director
Legal and Government Relations
Michelle Oroschakoff
2013-09-01
Managing Director
Chief Risk Officer
Paul Middlemiss
2011-05-01
Executive Vice President
Chief Compliance Officer, Advisory
2016-11-21
John Andrew Kalbaugh
2010-03-01
Managing Director & Divisional President
Institution Services
Joan Dominy Khoury
2012-05-01
Managing Director
Chief Marketing Officer
2014-06-01
Sallie Rebecca Larsen
2012-05-01
Managing Director
Chief Human Capital Officer
Victor Peter Fetter, III
2012-12-01
Managing Director
Chief Information Officer
Mark Stephen Casady
2005-12-01
Chairman of the Board and CEO
Chief Executive Officer
William P. Morrissey, Jr.
2014-04-01
Managing Director & Divisional President
Independent Advisor Services
Stephanie Leigh Brown
2004-03-01
Managing Director
General Counsel
2013-08-19
Esther Marion Stearns
2007-03-01
Chief Operating Officer
President
2012-05-01
William Edward Dwyer III
2004-01-01
Managing Director
National Sales
2013-03-01
Denise Abood
2008-01-01
Managing Director
Human Capital
2012-06-30
Jonathan Eaton
2008-01-01
Managing Director
Retirement Planning
2012-06-30
Christopher F. Feeney
2008-01-28
Managing Director
Chief Information Officer
2012-12-31
Kathy VanNoy-Pineda
2009-05-21
EVP
Chief Compliance Officer, Brokerage
2014-01-01
John J. McDermott Jr.
2009-07-27
Managing Director
Chief Risk Officer
2013-09-13
Abdiel Alan Valenzuela
2009-05-21
VP - Advisory
Chief Compliance Officer, Advisory
2011-05-01
Derek Bruton
2010-03-01
Managing Director
National Sales
2014-04-04
Becky Shulman
2011-06-06
Managing Director
Deputy CFO
2011-11-21
Mary Frances Schott
2014-06-01
Managing Director
Client Experience and Training
2016-03-29
Ryan Christopher Parker
2014-06-01
Managing Director
Investment and Planning Solutions
2016-06-03
Thomas Dominic Lux
2015-03-16
Executive Vice President
Chief Financial Officer
2015-09-28
Thomas Andrew Gooley
2015-07-10
Managing Director
Service, Trading and Operations
Matthew Jon Audette
2015-09-28
Chief Financial Officer
Chief Financial Officer
Suzanne Elizabeth Auletta
2015-09-18
Executive Vice President
Chief Compliance Officer
Tracy Ellen Calder
2016-01-25
Managing Director
Deputy Chief Risk Officer
true
LPL Financial Holdings Inc.
Sole stockholder of LPL Holdings, Inc.
false
false
false
false
false
false
true
Linsco/Private Ledger Corp. (N/K/A LPL Financial)
SEC Administrative Proceeding Rel. Nos. 33-8371 and 34-49232
2004-02-12
The Securities and Exchange Commission
Action involved allegations related to application of mutual breakpoints for eligible customers on purchases of front-end load mutual funds.
The SEC issued and order against LPL that resulted in a censure, monetary fine, disgorgement/restitution and cease and desist/injunction.
LPL Financial
SEC Administrative Proceeding No. 34-58515
2008-09-11
The Securities and Exchange Commission
Proceeding involved allegations of violations of the safeguards rules of Regulation S-P.
The SEC issued an order against LPL that resulted in a censure, monetary fine, remedial undertakings by LPL, and cease and desist/injunction.
false
true
LPL Financial
SEC Administrative Proceeding Rel. Nos. 33-8371 and 34-49232
2004-02-12
The Securities and Exchange Commission
Action involved allegations related to application of mutual breakpoints for eligible customers on purchases of front-end load mutual funds.
The SEC issued an order against LPL that resulted in a censure, monetary fine, disgorgement/restitution, and cease and desist/injunction.
true
LPL Financial
Consent Order
2014-09-04
State of Ohio Department of Insurance
LPL failed to report various regulatory actions to the Ohio Department of Insurance within 30 days.
$800.00 fine and investigative costs of $200.00.
true
Private Ledger Financial Services, Inc. (N/K/A LPL Financial)
Docket/Case Number: 82-66-S
1984-05-20
State of Michigan
The matter involved a client that was sold various securities by two Private Ledger Financial Services, Inc. (PLFS) agents who were not registered in Michigan at the time of sale, which is a violation of Michigan Securities Act.
PLFS was censured and ordered to pay restitution of $11,163.00 to a Michigan client.
Private Ledger Financial Services, Inc. (N/K/A LPL Financial)
Docket/Case Number: 50-86-952(a).
1986-05-14
State of Georgia
The matter involved allegations that PLFS offered for sale and sold securities which were not effectively registered nor exempt from registration.
PLFS reimbursed the Commissioner in the amount of $1,000.00 and agreed to cease and desist without admitting or denying any of the findings of fact or conclusions of Law.
LPL Financial
Docket/Case Number: 9501-04LC
1996-10-09
State of Pennsylvania
The matter involved conduct of a former registered representative and one of its predecessor firms, Private Ledger Financial Services (PLFS).
LPL consented to an order requiring it to engage an independent consultant to review its existing compliance policies & procedures, pay costs of $19,304.94 and comply with PA securities regulations.
LPL Financial
Docket/Case Number: 97E179
1998-12-01
State of Kansas
The proceeding was based on the conduct of a former registered representative and one of its predecessor firms, PLFS.
LPL agreed to review procedures and make modifications that LPL determines to be reasonable, not overly burdensome and offers restitution to certain LPL customers.
LPL Financial
Docket/Case Number: IC06-CAF-19
2006-06-28
State of Texas
Involved allegations that LPL failed to timely update its Form BD to reflect the use of other business names in connection with securities activity by certain LPL branch offices in TX.
The order resulted in a reprimand and administrative fine in the amount of $10,000.00.
LPL Financial
Docket/Case Number: 2007-03-01
2007-11-20
State of Pennsylvania
Allegations that at certain times between 1998 and 2006, LPL failed to maintain or enforce procedures reasonably designed to supervise one or more of its former registered representatives.
The matter resulted in a $200,000.00 administrative assessment and $30,000.00 for investigative and legal costs.
LPL Financial
Docket/Case Number: SEC-2009-46
2009-09-11
State of Montana
Allegation that LPL failed to reasonably supervise a former registered representative.
LPL consented to pay restitution of $1,144,416.51 and a fine to the State of Montana of $150,000.00.
LPL Financial
Docket/Case Number: SEU-2007-73
2007-12-24
State of Hawaii
Allegation of failure to disclose to clients material information in connection with the offer, sale or purchase of securities.
Consent agreement resulted in an administrative penalty of $10,000.00.
LPL Financial
Docket/Case Number: 2010-AH-012
2009-12-08
State of Kentucky
Allegation that LPL paid advisory compensation to registered representative who was not qualified and was not registered as an investment advisor representative.
Matter resulted in a fine of $4,000.00.
LPL Financial
Docket/Case Number: 0800381
2010-07-12
State of Illinois
Allegation that LPL failed to detect the role of one of its former representatives in the sale of participations in oil and gas projects.
Matter resulted in a $300,000.00 fine and restitution of $167,796.00.
LPL Financial
Docket/Case Number: AP-10-16
2010-08-11
State of Missouri
Matter involved sale of variable annuity contract in which one of its representatives allegedly misunderstood the contract's rider.
Matter resulted in a censure and $37,540.00 in total for fine, restitution and interest.
LPL Financial
Docket/Case Number:1000096
2011-10-24
State of Illinois
Allegation that LPL failed to supervise a former registered representative.
Matter resulted in restitution of $1,885,000.00 to customers.
LPL Financial
Docket/Case Number: 2009-10-06
2011-12-06
State of Pennsylvania
Allegation that LPL failed to supervise two former registered representatives.
Matter resulted in a fine of $59,092.52 and investigative costs.
LPL Financial
Docket/Case Number: S-07-0001-2
2011-11-08
State of Oregon
Allegation that LPL failed to supervise a former OSJ manager's transactions.
Matter resulted in a fine of $100,000.00.
LPL Financial
Docket/Case Number: AP-13-21
2013-12-17
State of Missouri
Allegation that LPL failed to supervise a former registered representative.
Fine of $175,000.00 and pay the cost of the investigation in the amount of $10,000.00.
LPL Financial
Docket/Case Number: SEC-2012-144
2012-11-04
State of Montana
Allegation that LPL failed to supervise a former registered representative.
Matter resulted in a fine of $10,000.00 and restitution of $20,500.00 to customers.
LPL Financial
Docket/Case Number: 2012-0036
2012-12-12
State of Massachusetts
Allegations of failure to supervise and train registered representatives in connection with the sale of non-traded REITS.
Matter resulted in a fine of $500,000.00 and restitution to certain customers.
LPL Financial
Docket/Case Number: IC08-CAF-22
2008-12-30
State of Texas
The state alleged that LPL failed to enforce its written procedures by failing to report a felony charge on a registered representative's Form U4.
Fine of $5,000.00.
LPL Financial
File No. 1200385
2014-06-30
State of Illinois Securities Department
LPL submitted to a consent order with the Illinois Securities Department in connection with certain variable annuity exchange transactions, in particular, relating to its failure to adequately enforce supervisory procedures and maintain certain books and records required under Illinois law.
LPL agreed to a censure, fine of $2,000,000.00 and restitution to impacted customers of approximately $800,000.00.
LPL Financial
File no. 1200385
2014-10-31
State of Illinois Securities Department
LPL Financial failed to detect improper and fraudulent conduct on the part of David Lisnek toward his LPL clients. LPL Financial allowed Mr. Lisnek to remain a registered representative while several facts, viewed together as a pattern of conduct, would have constituted multiple cautionary indicators of the potential for improper conduct.
Fine of $500,000.00 and restitution in the amount of $315,218.00.
LPL Financial
Consent Order
2015-07-14
Massachusetts Securities Division
LPL consented to the findings that it did not establish, maintain, or enforce adequate procedures to review senior-specific titles for compliance with the Commonwealth's Senior Designations Regulations adopted June 1, 2007. As a result, LPL allowed its broker-dealer agents and investment adviser representatives to use prohibited senior-specific designations.
Censure, undertakings, cease and desist, and a fine in the amount of $250,000.00.
LPL Financial
Stipulation and Consent
2015-07-31
State of Florida Office of Financial Regulation
LPL consented to the sanctions and the entry of the findings that from September 2009 to September 2013, LPL allowed one of its registered representatives to engage in investment advisory business from an office in the State of Florida without being lawfully registered in Florida.
Cease and desist and a fine in the amount of $10,000.00.
LPL Financial
Consent Order
2015-09-22
State of Delaware Investor Protection Unit
LPL consented to the sanctions and the entry of findings that LPL failed to ensure that its financial advisors understood and explained the unique risks, failed to enforce its warning and fine system with regard to its leveraged ETFs concentration limits, and failed to adequately monitor and ensure the monitoring of client holding periods, all of which constitute a failure to supervise.
Fine in the amount of $50,000.00, restitution in the amount of $150,000.00, and undertakings.
LPL Financial
Consent Order
2015-10-01
State of Nevada Securities Division
LPL consented to the sanctions and the entry of findings that from January 1, 2008 through December 31, 2013, LPL offered multiple non-traded REITs that were sold in excess of the REIT's prospectus standards, various state concentration limits, or its own alternative investment guidelines. LPL failed to implement an adequate supervisory system that was reasonably designed to achieve compliance with NAC 90.321. LPL also failed to enforce its written procedures to supervise the activities of its registered representatives in violation of NAC 90.321.
Fine of $21,202.19 and reimbursement of $19,676.00 for investigation costs to Nevada, reimbursement of $35,000.00 for investigation costs to NASAA, censure, restitution, cease and desist, and undertakings.
LPL Financial
Assurance of Discontinuance
2015-09-15
Commonwealth of Massachusetts
LPL consented to the sanctions and the entry of findings that LPL offered leveraged ETFs without monitoring and systematically reviewing the length of time its clients held leveraged ETFs. LPL provided insufficient training materials to financial advisors and failed to identify and examine potential issues concerning the suitability of leveraged ETF exposure. Moreover, LPL did not consistently adhere to its policy of imposing fines on LPL financial advisors who exceeded this concentration limit.
Fine in the amount of $200,000.00, restitution in the amount of $1,600,000.00, and undertakings.
LPL Financial
Consent Order
2015-11-04
State of Ohio Department of Insurance
LPL consented to the allegations that it violated Ohio statute 3905.22 by failing to timely report a regulatory action taken by the state of New Hampshire dated April 6, 2015.
Civil penalty in the amount of $1,800.00 and administrative costs of $200.00.
LPL Financial LLC
Administrative Consent Order
2015-11-24
Mississippi Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Mississippi residents.
Civil penalty in the amount of $19,253.45, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-23
Commonwealth of Puerto Rico
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Puerto Rico residents.
Civil penalty in the amount of $10,125.11, cease and desist, offers of remediation, and undertakings.
Pennsylvania Department of Banking and Securities
Consent Order
2015-11-30
Pennsylvania Department of Banking and Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Pennsylvania residents.
Civil penalty in the amount of $26,110.92, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-24
New Mexico Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to New Mexico residents.
Civil penalty in the amount of $11,528.48, cease and desist, offers of remediation, and undertakings.
LPL Financial
Consent Order
2015-11-30
South Dakota Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to South Dakota residents. The Firm received a copy of the final Consent Order on November 30, 2015.
Civil penalty in the amount of $12,500.70, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-24
Indiana Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Indiana residents.
Civil penalty in the amount of $19,041.63 and reimbursement of $35,000 for investigation costs to NASAA, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation and Consent Order
2015-12-03
Utah Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Utah residents.
Civil penalty in the amount of $18,293.16, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-03
Missouri Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Missouri residents.
Civil penalty in the amount of $38,522.75, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-01
Texas State Securities Board
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Texas residents.
Civil penalty in the amount of $110,855.07, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent To Order
2015-12-03
Alaska Division of Banking and Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Alaska residents.
Civil penalty in the amount of $10,570.45, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation for Consent Order
2015-12-30
Colorado Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Colorado residents.
Civil penalty in the amount of $40,183.94, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation and Consent Agreement
2015-12-30
Florida Office of Financial Regulation
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Florida residents.
Administrative fine in the amount of $50,555.39, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-01-08
Georgia Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Georgia residents.
Civil penalty in the amount of $28,021.63, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-21
Idaho Department of Finance
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Idaho residents.
Civil penalty in the amount of $17,738.18, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-01-05
Iowa Insurance Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Iowa residents.
Civil penalty in the amount of $16,638.57, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-21
Michigan Department of Licensing and Regulatory Affairs
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Michigan residents. The Consent Order was issued and entered by Michigan on December 21, 2015.
Civil penalty in the amount of $38,133.80, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-23
Minnesota Department of Commerce
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Minnesota residents. The Firm received a copy of the final Consent Order on December 23, 2015.
Civil penalty in the amount of $41,209.74, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-29
Nebraska Department of Banking & Finance
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Nebraska residents.
Civil penalty in the amount of $16,736.07, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-15
New Hampshire Bureau of Securities Regulation
Without admitting or denying the facts or allegations, LPL consented to the findings that LPL failed to implement an adequate supervisory system and enforce its written procedures regarding the sale of non-traded REITs to New Hampshire residents.
Pay an administrative fine of $250,000.00, the Bureau's costs of $250,000.00, and a contribution to the investor education fund of $250,000.00, offer remediation, undertakings, and cease and desist from any further violations.
LPL Financial LLC
Administrative Consent Order
2016-01-29
California Department of Business Oversight
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to California residents.
Civil penalty in the amount of $140,220.11, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-01-15
Washington Department of Financial Institutions Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Washington residents.
Civil penalty in the amount of $65,766.07, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-02-09
Alabama Securities Commission
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Alabama residents.
Civil penalty in the amount of $18,267.52, of which $8,267.52 represents partial reimbursement for the Commission's cost for investigating this matter, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-02-09
North Dakota Securities Department
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to North Dakota residents.
Civil penalty in the amount of $11,012.50, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-02-18
Texas State Securities Board
In May 2015, the Staff of the Texas Securities Board initiated an investigation into LPL's Financial Statement Reviews for agents registered with the Texas Securities Commission. In certain instances, during the relevant periods of January 2011 through September 2011 and June 2014 through December 2014, the Financial Statement Reviews were not conducted in accordance with LPL's written supervisory procedures.
LPL consented to the entry of the order, an administrative fine in the amount of $95,000.00, and undertakings.
LPL Financial LLC
Consent Order
2016-02-19
Washington Insurance Commissioner
LPL consented to the entry of a consent order with the Insurance Commissioner of the state of Washington, after its investigation into the conduct of a non-resident insurance producer after receiving a complaint from an insured alleging that he misrepresented the benefits and suitability of an annuity. More than one of the insurance producers' violations were known or should have been known by one or more individuals acting on behalf of LPL, and LPL neither reported the violations nor took corrective action.
LPL paid a fine in the amount of $2,000.00.
LPL Financial LLC
Consent Order
2016-02-26
Office of the Kansas Securities Commissioner
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Kansas residents.
Civil penalty in the amount of $16,182.86, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Administrative Consent Order
2016-02-29
Kentucky Department of Financial Institutions
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Kentucky residents.
Civil penalty in the amount of $22,841.84, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-02
Wisconsin Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Wisconsin residents.
Civil penalty in the amount of $25,928.70, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-04
Tennessee Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Tennessee residents.
Civil penalty in the amount of $33,714.11, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-11
U.S. Virgin Islands Division of Banking and Insurance
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to U.S. Virgin Islands residents.
Civil penalty in the amount of $10,013.22, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-14
Ohio Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Ohio residents.
Civil penalty in the amount of $35,522.13, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-30
South Carolina Securities Commission
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to South Carolina residents.
Civil penalty in the amount of $80,000.00, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-04-26
Arkansas Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Arkansas residents.
Civil penalty in the amount of $19,347.74, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-04-29
Oregon Division of Financial Regulation
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Oregon residents.
Civil penalty in the amount of $24,642.20, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-05-03
Oklahoma Department of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Oklahoma residents.
Civil penalty in the amount of $21,245.14, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-06-30
Commonwealth of Massachusetts
The Firm entered into a Consent Order with the Commonwealth of Massachusetts, Enforcement Section of the Division, related to their investigation into whether the Firm's activities and conduct violated the Massachusetts Uniform Securities Act. The Enforcement Section alleged that during the time period of January 1, 2014 to June 30, 2016, the Firm failed to supervise its agents when it failed to review those agents' misleading communications with the public in connection with the purchase and sale of an agents' book of business. The Enforcement Section also alleged that the Firm failed to supervise its agents when such agent borrowed money from a client and lost that money in speculative trading for agents' own account.
A fine in the amount of $100,000.00, payment of restitution to clients in the amount of $217,750.00, cease and desist, additional undertakings of employee training, and changes to policies and procedures.
LPL Financial LLC
Consent Order
2016-07-05
Wyoming Secretary of State Compliance Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Wyoming residents.
Civil penalty in the amount of $12,344.55, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-07-20
Louisiana Office of Financial Institutions
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Louisiana residents.
Civil penalty in the amount of $64,363.95, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-07-27
Maryland Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Maryland residents.
Civil penalty in the amount of $28,172.31, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-08-25
Hawaii Department of Commerce and Consumer Affairs
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Hawaii residents.
Civil penalty in the amount of $19,825.37, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-07-18
Montana Securities Department
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Montana residents.
Civil penalty in the amount of $11,397.81, investigative costs of $29,112.18, cease and desist, offers of remediation, and undertakings.
false
true
LPL Financial
Docket/Case Number: IC06-CAF-19
2006-06-28
State of Texas
Involved allegations with LPL failed to timely update its Form BD to reflect the use of other business names in connection with securities activity by certain LPL branch offices in TX.
The order resulted in a reprimand and a fine in the amount of $10,000.00.
LPL Financial
Docket/Case Number: SEC-2009-46
2009-10-26
State of Montana
Allegation that LPL failed to reasonably supervise a former registered representative.
Consent order resulted in LPL agreeing to pay restitution of $1,144,416.51 and a fine to the State of MT of $150,000.00.
LPL Financial
Docket/Case No. 2010-AH-012
2009-12-08
State of Kentucky
Allegation that LPL paid advisory compensation to a registered representative who was not qualified and was not registered as an investment advisor representative.
$4,000.00 fine.
LPL Financial
Docket/Case Number: 0800381
2010-07-12
State of Illinois
Allegation that LPL failed to detect role of one of its former representatives in the sale of participations in oil and gas projects.
Matter resulted in a $300,000.00 fine and restitution of $167,796.00.
LPL Financial
Docket/Case Number: 1000096
2011-10-24
State of Illinois
Allegation that LPL failed to supervise a former registered representative.
Matter resulted in $1,885,000.00 restitution to customers.
LPL Financial
Docket/Case Number: 2009-10-06
2011-12-06
State of Pennsylvania
Allegation that LPL failed to supervise two former registered representatives.
Matter resulted in $59,092.52 fine for investigative costs.
LPL Financial
Docket/Case Number: S-07-0001-2
2011-11-08
State of Oregon
Allegation that LPL failed to supervise a former OSJ manager's transactions.
Matter resulted in $100,000.00 fine.
LPL Financial
Docket/Case Number: AP-10-16
2010-08-11
State of Missouri
Matter involved sale of variable annuity contract in which a registered representative allegedly misunderstood the contract's rider.
Matter resulted in a censure and $37,540.00 in total for fine, restitution and interest.
LPL Financial
Docket/Case No. 2007-03-01
2007-11-20
State of Pennsylvania
Allegations that at certain times between 1998 and 2006, LPL failed to maintain or enforce procedures reasonably designed to supervise one or more of its former registered representatives.
The matter resulted in a $200,000.00 administrative assessment and $30,000.00 for investigative and legal costs.
LPL Financial
Docket/Case Number: IC08-CAF-22
2008-12-30
State of Texas
The state alleged that LPL failed to enforce its written procedures relating to the notification of a felony charge and Form U4 updates.
Fine of $5,000.00.
LPL Financial
Docket/Case Number: AP-13-21
2013-12-17
State of Missouri
Allegation that LPL failed to supervise a former registered representative.
Fine of $175,000.00 and payment of the cost of the investigation in the amount of $10,000.00.
LPL Financial
Docket/Case Number: SEC-2012-144
2012-11-04
State of Montana
Allegation that LPL failed to supervise a former registered representative.
Fine of $10,000.00 and $20,500.00 in restitution to customers.
LPL Financial
Docket/Case Number: 2012-0036
2012-12-12
State of Massachusetts
Allegations of failure to supervise and train registered representatives in connection with the sale of non-traded REITS.
Fine of $500,000.00 and restitution to certain customers.
LPL Financial
File No. 1200385
2014-06-30
State of Illinois Securities Department
LPL submitted to a consent order with the Illinois Securities Department in connection with certain variable annuity exchange transactions, in particular, relating to its failure to adequately enforce supervisory procedures and maintain certain books and records required under Illinois law.
LPL agreed to a censure, fine of $2,000,000.00 and restitution to impacted customers of approximately $800,000.00
LPL Financial
Consent Order
2014-09-04
State of Ohio Department of Insurance
LPL failed to report various regulatory actions to the Ohio Department of Insurance within 30 days.
$800.00 fine and investigative costs of $200.00.
LPL Financial
File No. 1200385
2014-10-31
State of Illinois Securities Department.
LPL Financial failed to detect improper and fraudulent conduct on the part of David Lisnek toward his LPL clients. LPL Financial allowed Mr. Lisnek to remain a registered representative while several facts, viewed together as a pattern of conduct, would have constituted multiple cautionary indicators of the potential for improper conduct.
Fine of $500,000.00 and restitution in the amount of $315,218.00.
LPL Financial
Consent Order
2015-07-14
Massachusetts Securities Division
LPL consented to the findings that it did not establish, maintain, or enforce adequate procedures to review senior-specific titles for compliance with the Commonwealth's Senior Designations Regulations adopted June 1, 2007. As a result, LPL allowed its broker-dealer agents and investment adviser representatives to use prohibited senior-specific designations.
Censure, undertakings, cease and desist, and a fine in the amount of $250,000.00.
LPL Financial
Stipulation and Consent
2015-07-31
State of Florida Office of Financial Regulation
LPL consented to the sanctions and the entry of the findings that from September 2009 to September 2013, LPL allowed one of its registered representatives to engage in investment advisory business from an office in the State of Florida without being lawfully registered in Florida.
Cease and desist and a fine in the amount of $10,000.00.
LPL Financial
Consent Order
2015-09-22
State of Delaware Investor Protection Unit
LPL consented to the sanctions and the entry of findings that LPL failed to ensure that its financial advisors understood and explained the unique risks, failed to enforce its warning and fine system with regard to its leveraged ETFs concentration limits, and failed to adequately monitor and ensure the monitoring of client holding periods, all of which constitute a failure to supervise.
Fine in the amount of $50,000, restitution in the amount of $150,000.00, and undertakings.
LPL Financial
Consent Order
2015-10-01
State of Nevada Securities Division
LPL consented to the sanctions and the entry of findings that from January 1, 2008 through December 31, 2013, LPL offered multiple non-traded REITs that were sold in excess of the REIT's prospectus standards, various state concentration limits, or its own alternative investment guidelines. LPL failed to implement an adequate supervisory system that was reasonably designed to achieve compliance with NAC 90.321. LPL also failed to enforce its written procedures to supervise the activities of its registered representatives in violation of NAC 90.321.
Fine of $21,202.19 and reimbursement of $19,676.00 for investigation costs to Nevada, reimbursement of $35,000.00 for investigation costs to NASAA, censure, restitution, cease and desist, and undertakings.
LPL Financial
Assurance of Discontinuance
2015-09-15
Commonwealth of Massachusetts
LPL consented to the sanctions and the entry of findings that LPL offered leveraged ETFs without monitoring and systematically reviewing the length of time its clients held leveraged ETFs. LPL provided insufficient training materials to financial advisors and failed to identify and examine potential issues concerning the suitability of leveraged ETF exposure. Moreover, LPL did not consistently adhere to its policy of imposing fines on LPL financial advisors who exceeded this concentration limit.
Fine in the amount of $200,000.00, restitution in the amount of $1,600,000.00, and undertakings.
LPL Financial
Consent Order
2015-11-04
State of Ohio Department of Insurance
LPL consented to the allegations that it violated Ohio statute 3905.22 by failing to timely report a regulatory action taken by the state of New Hampshire dated April 6, 2015.
Civil fine in the amount of $1,800.00 and administrative costs of $200.00.
LPL Financial LLC
Administrative Consent Order
2015-11-24
Mississippi Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Mississippi residents.
Civil penalty in the amount of $19,253.45, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-23
Commonwealth of Puerto Rico
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Puerto Rico residents.
Civil penalty in the amount of $10,125.11, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-30
Pennsylvania Department of Banking and Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Pennsylvania residents.
Civil penalty in the amount of $26,110.92, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-24
New Mexico Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to New Mexico residents.
Civil penalty in the amount of $11,528.48, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-30
South Dakota Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to South Dakota residents. The Firm received a copy of the final Consent Order on November 30, 2015.
Civil penalty in the amount of $12,500.70, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-11-24
Indiana Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Indiana residents.
Civil penalty in the amount of $19,041.63 and reimbursement of $35,000 for investigation costs to NASAA, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation and Consent Order
2015-12-03
Utah Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Utah residents.
Civil penalty in the amount of $18,293.16, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-03
Missouri Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Missouri residents.
Civil penalty in the amount of $38,522.75, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-01
Texas State Securities Board
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Texas residents.
Civil penalty in the amount of $110,855.07, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent To Order
2015-12-03
Alaska Division of Banking and Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Alaska residents.
Civil penalty in the amount of $10,570.45, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation for Consent Order
2015-12-30
Colorado Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Colorado residents.
Civil penalty in the amount of $40,183.94, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation and Consent Agreement
2015-12-30
Florida Office of Financial Regulation
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Florida residents.
Administrative fine in the amount of $50,555.39, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-01-08
Georgia Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Georgia residents.
Civil penalty in the amount of $28,021.63, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-21
Idaho Department of Finance
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Idaho residents.
Civil penalty in the amount of $17,738.18, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-01-05
Iowa Insurance Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Iowa residents.
Civil penalty in the amount of $16,638.57, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-21
Michigan Department of Licensing and Regulatory Affairs
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Michigan residents. The Consent Order was issued and entered by Michigan on December 21, 2015.
Civil penalty in the amount of $38,133.80, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-23
Minnesota Department of Commerce
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Minnesota residents. The Firm received a copy of the final Consent Order on December 23, 2015.
Civil penalty in the amount of $41,209.74, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-29
Nebraska Department of Banking & Finance
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Nebraska residents.
Civil penalty in the amount of $16,736.07, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2015-12-15
New Hampshire Bureau of Securities Regulation
Without admitting or denying the facts or allegations, LPL consented to the findings that LPL failed to implement an adequate supervisory system and enforce its written procedures regarding the sale of non-traded REITs to New Hampshire residents.
Pay an administrative fine of $250,000.00, the Bureau's costs of $250,000.00, and a contribution to the investor education fund of $250,000.00, offer remediation, undertakings, and cease and desist from any further violations.
LPL Financial
Administrative Consent Order
2016-01-29
California Department of Business Oversight
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to California residents.
Civil penalty in the amount of $140,220.11, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-01-15
Washington Department of Financial Institutions Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Washington residents.
Civil penalty in the amount of $65,766.07, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-02-09
Alabama Securities Commission
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Alabama residents.
Civil penalty in the amount of $18,267.52, of which $8,267.52 represents partial reimbursement for the Commission's cost for investigating this matter, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-02-09
North Dakota Securities Department
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to North Dakota residents.
Civil penalty in the amount of $11,012.50, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-02-18
Texas State Securities Board
In May 2015, the Staff of the Texas Securities Board initiated an investigation into LPL's Financial Statement Reviews for agents registered with the Texas Securities Commission. In certain instances, during the relevant periods of January 2011 through September 2011 and June 2014 through December 2014, the Financial Statement Reviews were not conducted in accordance with LPL's written supervisory procedures.
LPL consented to the entry of the order, an administrative fine in the amount of $95,000.00, and undertakings.
LPL Financial LLC
Consent Order
2016-02-19
Washington Insurance Commissioner
LPL consented to the entry of a consent order with the Insurance Commissioner of the state of Washington, after its investigation into the conduct of a non-resident insurance producer after receiving a complaint from an insured alleging that he misrepresented the benefits and suitability of an annuity. More than one of the insurance producers' violations were known or should have been known by one or more individuals acting on behalf of LPL, and LPL neither reported the violations nor took corrective action.
LPL paid a fine in the amount of $2,000.00.
LPL Financial LLC
Consent Order
2016-02-26
Office of the Kansas Securities Commissioner
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Kansas residents.
Civil penalty in the amount of $16,182.86, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Administrative Consent Order
2016-02-29
Kentucky Department of Financial Institutions
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Kentucky residents.
Civil penalty in the amount of $22,841.84, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-02
Wisconsin Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Wisconsin residents.
Civil penalty in the amount of $25,928.70, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-04
Tennessee Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Tennessee residents.
Civil penalty in the amount of $33,714.11, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-11
U.S. Virgin Islands Division of Banking and Insurance
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to U.S. Virgin Islands residents.
Civil penalty in the amount of $10,013.22, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-14
Ohio Division of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Ohio residents.
Civil penalty in the amount of $35,522.13, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-03-30
South Carolina Securities Commission
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to South Carolina residents.
Civil penalty in the amount of $80,000.00, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-04-26
Arkansas Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Arkansas residents.
Civil penalty in the amount of $19,347.74, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-04-29
Oregon Division of Financial Regulation
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Oregon residents.
Civil penalty in the amount of $24,642.20, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-05-03
Oklahoma Department of Securities
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Oklahoma residents.
Civil penalty in the amount of $21,245.14, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-06-30
Commonwealth of Massachusetts
The Firm entered into a Consent Order with the Commonwealth of Massachusetts, Enforcement Section of the Division, related to their investigation into whether the Firm's activities and conduct violated the Massachusetts Uniform Securities Act. The Enforcement Section alleged that during the time period of January 1, 2014 to June 30, 2016, the Firm failed to supervise its agents when it failed to review those agents' misleading communications with the public in connection with the purchase and sale of an agents' book of business. The Enforcement Section also alleged that the Firm failed to supervise its agents when such agent borrowed money from a client and lost that money in speculative trading for agents' own account.
A fine in the amount of $100,000.00, payment of restitution to clients in the amount of $217,750.00, cease and desist, additional undertakings of employee training, and changes to policies and procedures.
LPL Financial LLC
Consent Order
2016-07-05
Wyoming Secretary of State Compliance Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Wyoming residents.
Civil penalty in the amount of $12,344.55, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-07-20
Louisiana Office of Financial Institutions
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Louisiana residents.
Civil penalty in the amount of $64,363.95, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-07-27
Maryland Securities Division
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Maryland residents.
Civil penalty in the amount of $28,172.31, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-08-25
Hawaii Department of Commerce and Consumer Affairs
LPL consented to the findings that from January 1, 2008 through December 31,2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Hawaii residents.
Civil penalty in the amount of $19,825.37, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
2016-07-18
Montana Securities Department
LPL consented to the findings that from January 1, 2008 through December 31, 2013, it failed to implement an adequate supervisory system regarding its sales of non-traded REITs and failed to enforce its written procedures regarding the sale of non-traded REITs to Montana residents.
Civil penalty in the amount of $11,397.81, investigative costs of $29,112.18, cease and desist, offers of remediation, and undertakings.
true
LPL Financial
Order of Revocation
2015-02-13
State of Ohio Department of Insurance
On or about September 4, 2014, LPL entered into a Consent Agreement with the Ohio Department of Insurance regarding the reporting of various administrative actions on its license. Pursuant to the agreement, LPL was required to pay a civil penalty and administrative costs. LPL failed to comply with the order in paying the civil penalty and administrative costs. On February 27, 2015, the Ohio Department of Insurance issued an order vacating the prior Order of Revocation entered on February 13, 2015.
LPL did not receive the invoice for the $1,000 civil penalty and administrative costs. When the Firm became aware of the Order of Revocation, the monetary penalty was paid promptly and the Firm's license was reinstated on February 27, 2015.
false
true
LPL Financial
Acceptance, Waiver and Consent
2013-05-21
FINRA
The matter involved inadequate e-mail supervision and allegations of misstatements regarding the chronology of events concerning the LPL's discovery of the issue.
Fine of $7,500,000.00.
true
PLFS (N/K/A LPL Financial)
Acceptance, Waiver and Consent
1980-06-04
NASD District 2 Business Conduct Committee
Allegations involved failure to supervise a branch office for use of stationary and business cards, failure to use appropriate signage and a listing in a phone directory.
Fine of $500.00.
LPL Financial
Acceptance, Waiver and Consent
2003-02-13
NASD
The matter arose out of a representatives' unauthorized participation in and postings on electronic bulletin boards.
The AWC resulted in a fine of $5,000.00 and an undertaking to revise LPL's written supervisory procedures concerning communications with the public via electronic media.
LPL Financial
Acceptance, Waiver and Consent
2003-03-27
NASD
The matter arose from an error in reporting 23 transactions in FIPS securities within five minutes after execution.
The AWC resulted in a fine of $5,000.00.
LPL Financial
Acceptance, Waiver and Consent
2004-02-12
NASD
Action involved allegations related to application of mutual breakpoints for eligible customers on purchases of front-end load mutual funds.
LPL was censured and fined $2,232,805.00 and made various other undertakings to the NASD.
LPL Financial
Acceptance, Waiver and Consent
2004-10-11
NASD
The matter involved allegations related to two municipal bond liquidations.
AWC resulted in censure and fine of $5,000.00, restitution of $4,662.00, and undertaking to review written supervisory procedures related to determining FMV of municipal securities.
LPL Financial
Acceptance, Waiver and Consent
2004-11-30
NASD
The matter arose out of LPL's alleged late filing of amendments to Forms U4 and Forms U5 from January 2002 through March 2004.
The AWC resulted in a censure, fine in the amount of $450,000.00 and various undertakings by LPL.
LPL Financial
Acceptance, Waiver and Consent
2005-06-08
NASD
The matter arose out of LPL's acceptance of directed brokerage payments from mutual fund companies.
The AWC resulted in a fine of $3,602,398.00.
LPL Financial
Acceptance, Waiver and Consent
2005-11-14
NASD
Allegations that LPL failed to establish, maintain and enforce reasonable system of procedures to supervise activities of registered persons in connection with wire transfers.
AWC resulted in a censure and fine of $75,000.00.
LPL Financial
Acceptance, Waiver and Consent
2005-12-19
NASD
Matter arose out of allegations related to recommendations to customers for the purchase of mutual fund Class B and C shares.
The AWC resulted in a fine of $2,400,000.00.
LPL Financial
Acceptance, Waiver and Consent
2006-01-06
NASD
The matter arose out of allegations related to violations of NASD rules regarding the termination of research coverage of subject companies.
The matter resulted in a fine of $5,000.00.
LPL Financial
Acceptance, Waiver and Consent
2006-12-21
NASD
Allegations were that during a period, LPL failed to establish, maintain and enforce adequate supervisory systems related to variable annuity exchanges.
The AWC resulted in various undertakings by LPL.
LPL Financial
Acceptance, Waiver and Consent
2007-04-17
NASD
Allegations that LPL failed to timely amend a representative's Form U4 with material information.
The AWC resulted in a fine of $5,000.00.
LPL Financial
Acceptance, Waiver and Consent
2009-09-04
FINRA
Allegations involved failure to comply with MSRB Rule G-14.
AWC resulted in a fine to LPL of $5,000.00.
LPL Financial
Acceptance, Waiver and Consent
2011-01-20
FINRA
Allegations involved review of e-mails.
Resulted in a censure and fine of $100,000.00.
LPL Financial
Acceptance, Waiver and Consent
2011-01-20
FINRA
Allegations involved review of procedures on transmittal of cash and securities from customer accounts to third-party accounts.
Resulted in a censure and fine of $100,000.00.
LPL Financial
Acceptance, Waiver and Consent
2011-01-06
FINRA
Allegations that LPL did not use reasonable diligence to ascertain best inter-dealer market and failed to buy or sell in such market so that the resulting price to customers was as favorable as possible.
Resulted in a censure and fine of $20,000.00.
LPL Financial
Acceptance, Waiver and Consent
2010-12-22
FINRA
Allegations involved procedures on supervision of variable annuity exchanges.
Resulted in a censure and fine of $175,000.00.
LPL Financial
Acceptance, Waiver and Consent
2008-06-03
FINRA
Allegations involved failure to supervise a former registered representative in connection with his/her use of investment strategies, marketing materials and the appropriateness of investments.
Resulted in a censure and fine of $125,000.00
LPL Financial
Acceptance, Waiver and Consent
2011-06-08
FINRA
Allegations involved procedures on supervision of advertising and public appearances.
AWC resulted in a fine of $25,000.00.
LPL Financial
Acceptance, Waiver and Consent
2012-06-26
FINRA
Allegations of trade reporting violations.
Matter resulted in censure and $17,000.00 fine.
LPL Financial
Acceptance, Waiver and Consent
2011-07-26
FINRA
Allegations of trade reporting violations.
Matter resulted in censure and $22,500.00 fine.
LPL Financial
Acceptance, Waiver and Consent
2013-05-21
FINRA
The matter involved inadequate e-mail supervision and allegations of misstatements regarding the chronology of events concerning the LPL's discovery of the issue.
Fine of $7,500,000.00.
LPL Financial
Acceptance, Waiver and Consent
2013-05-16
FINRA
The action arose from allegations of charging commissions that were not fair and reasonable on certain corporate and municipal bonds.
Fine of $60,000.00.
LPL Financial
Acceptance, Waiver and Consent
2012-12-31
FINRA
Allegations of inadequate supervision of mutual fund prospectus delivery to customers.
Fine of $400,000.00.
LPL Financial
Acceptance, Waiver and Consent
2015-05-06
FINRA
Beginning in 2007, LPL pursued a strategy of significantly increasing the size of the Firm but LPL did not accompany this rapid growth with a concomitant dedication of sufficient resources to permit the Firm to meet its supervisory obligations. As a result, the Firm failed to have adequate systems and procedures in place to supervise certain aspects of its business. Examples of the alleged failures stemming from these allegations are set forth in the AWC, number 2013035109701.
$10,000,000 fine, undertakings, and restitution to certain customers.
LPL Financial
Acceptance, Waiver and Consent
2015-07-06
FINRA
Without admitting or denying the findings, the Firm consented to the sanctions and to the entry of findings that it disadvantaged certain retirement plan and charitable organization customers who were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge. The findings stated that these customers were instead sold Class A shares with a front-end sales charge or a Class B or C shares with back-end sales charges and higher ongoing fees and expenses. These sales disadvantaged customers by causing them to pay higher fees than they were actually required to pay. The findings also stated that the Firm has failed to establish and maintain a supervisory system and procedures reasonably designed to ensure that customers who purchased mutual fund shares received the benefit of applicable sales charge waivers. The Firm also failed to adopt any controls to detect instances in which the Firm did not provide sales charge waivers to customers in connection with their mutual fund purchases.
Censure, undertakings, and $5.72 million in restitution to customers.
false
false
false
false
true
N/A
N/A
1989-12-01
N/A
A claim for recovery of corporate funds embezzled by a former employee (not securities licensed) in the Private Ledger Financial Services Accounting Department.
Claim was paid in late 1989 by the National Union Fire Insurance Company.
N/A
N/A
2006-12-01
N/A
Claim for misappropriation of funds by a former registered representative.
Claim was paid during 2004 through 2006 by Zurich American.
N/A
N/A
2007-07-27
N/A
Claim for misappropriation of funds by a former registered representative.
Claim of $50,000.00 was paid on July 27, 2007 by Zurich American.
N/A
N/A
2011-11-02
N/A
Indemnification payments received from fidelity bond carrier. Claims arising from payments made by individuals to a former registered representative.
Payments totaling $1,279,433.79. Dates of payments: August 31, 2009 - $1,080,233.79; July 20, 2010 - $14,000.00 and; November 2, 2011 - $185,200.00.
N/A
N/A
2011-10-18
N/A
Issue related to non-payment of funds loaned to a former registered representative.
$2,000,000.00 claim paid.
N/A
N/A
2013-11-05
N/A
Claim for misappropriation of funds by a former registered representative.
$1,300,000.00 claim paid.
false
Steve Morrison
Senior Vice President, Associate Counsel
617-423-3644
2016-12-09