0001007444-20-000012.txt : 20201007
0001007444-20-000012.hdr.sgml : 20201007
20201007062715
ACCESSION NUMBER: 0001007444-20-000012
CONFORMED SUBMISSION TYPE: TA-1/A
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20200916
DATE AS OF CHANGE: 20201007
EFFECTIVENESS DATE: 20200926
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: 201228042
BUSINESS ADDRESS:
STREET 1: 4707 EXECUTIVE DRIVE
CITY: SAN DIEGO
STATE: CA
ZIP: 92121
BUSINESS PHONE: 617-423-3644
MAIL ADDRESS:
STREET 1: 1055 LPL WAY
CITY: FORT MILL
STATE: SC
ZIP: 29715
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
X0405
TA-1/A
0001007444
XXXXXXXX
084-05637
true
LIVE
SEC
LPL Financial LLC /TA
LPL Financial CORP /TA
008698
4707 Executive Drive
San Diego
CA
92121-3091
Y
1055 LPL Way
Fort Mill
SC
29715-8101
800-877-7210
N
N
N
N
Other
LPL Holdings, Inc.
04/01/1989
Managing Member
Parent Company
Mark Robert Helliker
08/01/2008
Managing Director
Client Support Services
08/01/2015
Robert Joseph Moore
05/01/2012
President and Director
Advisor & Institution Solutions
03/16/2015
Sharyn J. Handelsman
01/01/2014
Managing Director
Chief Compliance Officer, Brokerage
06/12/2015
George Burton White
11/01/2007
Managing Director
Investor & Investment Solutions
Dan Hogan Arnold, Jr.
05/01/2012
President, CEO, and Director
President and Chief Executive Officer
David Paul Bergers
08/01/2013
Managing Director
Legal and Government Relations
06/09/2017
Michelle Oroschakoff
09/01/2013
Managing Director and Director
Chief Legal Officer
Paul Middlemiss
05/01/2011
Executive Vice President
Chief Compliance Officer, Advisory
11/21/2016
John Andrew Kalbaugh
03/01/2010
Managing Director & Divisional President
National Sales & Consulting
Joan Dominy Khoury
05/01/2012
Managing Director
Chief Marketing Officer
06/01/2014
Sallie Rebecca Larsen
05/01/2012
Managing Director
Chief Human Capital Officer
Victor Peter Fetter, III
12/01/2012
Managing Director
Chief Information Officer
06/23/2017
Mark Stephen Casady
12/01/2005
Chairman of the Board and CEO
Chief Executive Officer
01/03/2017
William P. Morrissey, Jr.
04/01/2014
Managing Director & Divisional President
Business Development
09/04/2018
Stephanie Leigh Brown
03/01/2004
Managing Director
General Counsel
08/19/2013
Esther Marion Stearns
03/01/2007
Chief Operating Officer
President
05/01/2012
William Edward Dwyer III
01/01/2004
Managing Director
National Sales
03/01/2013
Denise Abood
01/01/2008
Managing Director
Human Capital
06/30/2012
Jonathan Eaton
01/01/2008
Managing Director
Retirement Planning
06/30/2012
Christopher F. Feeney
01/28/2008
Managing Director
Chief Information Officer
12/31/2012
Kathy VanNoy-Pineda
05/21/2009
EVP
Chief Compliance Officer, Brokerage
01/01/2014
John J. McDermott Jr.
07/27/2009
Managing Director
Chief Risk Officer
09/13/2013
Abdiel Alan Valenzuela
05/21/2009
VP - Advisory
Chief Compliance Officer, Advisory
05/01/2011
Derek Bruton
03/01/2010
Managing Director
National Sales
04/04/2014
Becky Shulman
06/06/2011
Managing Director
Deputy CFO
11/21/2011
Mary Frances Schott
06/01/2014
Managing Director
Client Experience and Training
03/29/2016
Ryan Christopher Parker
06/01/2014
Managing Director
Investment and Planning Solutions
06/03/2016
Thomas Dominic Lux
03/16/2015
Executive Vice President
Chief Financial Officer
09/28/2015
Thomas Andrew Gooley
07/10/2015
Managing Director
Service, Trading and Operations
03/15/2019
Matthew Jon Audette
09/28/2015
Managing Director and Director
Chief Financial Officer
Suzanne Elizabeth Auletta
09/18/2015
Executive Vice President
Chief Compliance Officer, Brokerage
04/18/2018
Tracy Ellen Calder
01/25/2016
Managing Director
Chief Risk Officer
04/03/2020
Kurt Walker Lofgren
03/13/2017
Senior Vice President
Chief Compliance Officer, Advisory
10/30/2018
Scott Alan Seese
07/10/2017
Managing Director
Chief Information Officer
Richard Charles Steinmeier
08/13/2018
Managing Director & Divisional President
Business Development
John Hugh O'Neill
11/20/2019
Executive Vice President
Chief Compliance Officer, Brokerage
Katherine Dailey Ring
10/30/2018
Senior Vice President
Chief Compliance Officer, Advisory
Dayton John Semerjian
02/28/2019
Managing Director
Chief Customer Care Officer
William E. Walcher
03/15/2019
Senior Vice President
Trading and Principal Operations Officer
Matthew J. Pechulis
05/01/2019
Senior Vice President
Accounting & Principal Financial Officer
Matthew Klaus Enyedi
01/07/2020
Managing Director
National Sales
LLC
Y
LPL Financial Holdings Inc.
Sole stockholder of LPL Holdings, Inc.
N
N
N
N
N
Y
LPL Financial LLC
Order - File No. 3-19039
03/11/2019
Securities and Exchange Commission
The Securities Exchange Commission found that at times during the relevant period, LPL Financial LLC purchased, recommended, or held for advisory clients mutual fund share classes that charged 12B-1 fees instead of lower-cost share classes of the same funds for which the clients were eligible. LPL also failed to disclose in its Form ADV or otherwise the conflicts of interest related to (a) its receipt of 12B-1 fees, and/or (b) its selection of mutual fund share classes that pay such fees. As a result of this aforementioned conduct, it was determined LPL willfully violated Section 206(2) and 207 of The Advisers Act.
LPL was ordered to cease and desist from committing or causing any violations and any future violations of Sections 206(2) and 207 of The Advisors Act. LPL received a censure, shall pay disgorgement of $8,115,290.79 and prejudgment interest of $1,218,225.
Y
Linsco/Private Ledger Corp. (N/K/A LPL Financial)
SEC Administrative Proceeding Rel. Nos. 33 8371 and 34 49232
02/12/2004
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
09/11/2008
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.
LPL Financial LLC
Order - File No. 3-19039
03/11/2019
Securities Exchange Commission
The Securities Exchange Commission found that at times during the relevant period, LPL Financial LLC purchased, recommended, or held for advisory clients mutual fund share classes that charged 12B-1 fees instead of lower-cost share classes of the same funds for which the clients were eligible. LPL also failed to disclose in its Form ADV or otherwise the conflicts of interest related to (a) its receipt of 12B-1 fees, and/or (b) its selection of mutual fund share classes that pay such fees. As a result of this aforementioned conduct, it was determined LPL willfully violated Section 206(2) and 207 of The Advisers Act.
LPL was ordered to cease and desist from committing or causing any violations and any future violations of Sections 206(2) and 207 of The Advisors Act. LPL received a censure, shall pay disgorgement of $8,115,290.79 and prejudgment interest of $1,218,225.
N
Y
LPL Financial
SEC Administrative Proceeding Rel. Nos. 33 8371 and 34 49232
02/12/2004
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.
Y
LPL Financial
Consent Order
09/04/2014
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.
Y
Private Ledger Financial Services, Inc. (N/K/A LPL Financial)
Docket/Case Number: 82-66-S
05/20/1984
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).
05/14/1986
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
10/09/1996
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
12/01/1998
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
06/28/2006
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
11/20/2007
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
09/11/2009
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
12/24/2007
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
12/08/2009
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
07/12/2010
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
08/11/2010
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
10/24/2011
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
12/06/2011
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
11/08/2011
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
12/17/2013
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
11/04/2012
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
12/12/2012
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
12/30/2008
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
06/30/2014
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
10/31/2014
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
07/14/2015
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
07/31/2015
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
09/22/2015
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
10/01/2015
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
09/15/2015
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
11/04/2015
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
11/24/2015
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
11/23/2015
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
11/30/2015
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
11/24/2015
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
11/30/2015
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
11/24/2015
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
12/03/2015
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
12/03/2015
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
12/01/2015
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
12/03/2015
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
12/30/2015
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
12/30/2015
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
01/08/2016
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
12/21/2015
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
01/05/2016
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
12/21/2015
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
12/23/2015
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
12/29/2015
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
12/15/2015
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
01/29/2016
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
01/15/2016
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
02/09/2016
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
02/09/2016
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
02/18/2016
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
02/19/2016
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
02/26/2016
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
02/29/2016
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
03/02/2016
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
03/04/2016
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
03/11/2016
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
03/14/2016
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
03/30/2016
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
04/26/2016
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
04/29/2016
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
05/03/2016
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
06/30/2016
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
07/05/2016
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
07/20/2016
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
07/27/2016
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
08/25/2016
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
07/18/2016
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.
LPL Financial LLC
Consent Order
01/27/2017
Commonwealth of Massachusetts
The Firm entered into a Consent Order with the Commonwealth of Massachusetts, Enforcement Section of the Division, related to allegations that LPL advisor, Roger S. Zullo, fabricated the suitability profiles of numerous LPL clients, selling them scores of large, illiquid, unsuitable, high commission variable annuities, at substantial upfront profits to himself and LPL, in violation of Sections 101, 102, and 204(a)(2)(G) of the Act. The Enforcement Section further alleges that LPL failed in its responsibility to supervise Roger S. Zullo, in violation of Section 204(a)(2)(J).
Cease and desist, censure, a fine in the amount of $975,000.00, additional undertakings, restitution and disgorgement to be determined based on results of LPL Financials investigation and accounting.
LPL Financial LLC
Consent Order
04/26/2017
State of Maine Office 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 Maine residents.
Civil penalty in the amount of $11,939.46, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
05/01/2017
Vermont 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 Vermont residents.
Civil penalty in the amount of $ 11,074.81, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
05/04/2017
Massachusetts Securities Division
The Massachusetts Securities Division alleged that LPL Financial failed to supervise financial advisors located on credit union premises, including the supervision of certain compensation and certain aspects of disclosures related to its business conducted on the credit union premises. On May 2, 2017, LPL submitted an Offer of Settlement to the Division. LPL neither admitted nor denied the Statement of Facts and Violations of Law contained in the Consent Order related to an ongoing investigation by the Division's Registration, Inspections, Compliance and Examinations Section during the time period of December 27, 2011 to May 2, 2017.
Cease and desist, censure, removal of the credit union's DBA name; a comprehensive review of the Firm's policies, procedures, training, and processes related to the allegations; certain undertakings, and pay a fine in the amount of $1,000,000.
LPL Financial LLC
Consent Order
05/26/2017
Virginia Division of Securities and Retail Franchising
LPL consented to the findings that from January 1, 2008 through December 21, 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 Virginia residents.
Civil penalty in the amount of $28,095.38, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
09/24/2017
The Secretary of State of North Carolina
The Secretary of State of North Carolina and Securities Administrator, alleged that LPL failed to reasonably supervise Charles Fackrell, one of its registered representatives, who unbeknownst to LPL, operated a Ponzi scheme in which he encouraged individuals to invest money in fictitious entities. Fackrell generally diverted the funds for personal expenses, although some funds were paid to investors to perpetuate the appearance of returns. After LPL was altered to Fackrell's criminal and unapproved activities, it immediately investigated and terminated him. The Securities Administrator executed the Order on 09/24/2017, but LPL did not receive it until 10/09/2017.
Cease and desist, civil penalty in the amount of $25,000.00, and reimburse the Securities Division in the amount of $270,000.00 for investigative costs.
LPL Financial LLC
Consent Order
10/24/2017
New Jersey Bureau of Securities
The New Jersey Bureau of Securities alleged that during the period of January 1, 2008 through December 31, 2015 LPL failed to adequately supervise its representatives' sales of certain alternative investments to New Jersey residents and failed to make and maintain accurate books and records relating to the sale of certain alternative investment transactions. LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order by the Bureau.
Cease and desist, civil penalty of $950,000.00, remit $25,000.00 to New Jersey's Investor Education Fund, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
06/22/2018
Alabama Securities Commission
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Alabama Securities Commission (Commission) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to Alabama residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation for certain securities sold to Alabama residents, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Consent Order
06/12/2018
Massachusetts Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Massachusetts Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to Massachusetts residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring, and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation for certain securities sold to Massachusetts residents, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Consent Order
08/15/2018
Indiana Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Indiana Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Indiana; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Indiana residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order
08/27/2018
Puerto Rico Office of the Commissioner of Financial Institutions
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Puerto Rico of the Commissioner of Financial Institutions (OCFI) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Puerto Rico; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Puerto Rico residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order
09/11/2018
Louisiana Office of Financial Institutions
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Louisiana Office of Financial Institutions (OFI) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Louisiana; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Louisiana residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order
09/13/2018
Investor Protection Unit of the Delaware Department of Justice
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Investor Protection Unit (IPU) of the Delaware Department of Justice alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to reasonably supervise and maintain adequate systems to comply with state securities registration requirements, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order
09/13/2018
Kentucky Department of Financial Institutions
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Kentucky Department of Financial Institutions (DFI) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Kentucky; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Kentucky residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order - NC File No. 14 SEC 035
03/26/2018
North Carolina 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 North Carolina residents.
Without admitting or denying the allegations, LPL agreed to pay the Division a total of $24,342.35 ($2,500 civil penalty and $21,842.35 for investigative costs), cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation and Consent Order - Docket No. SD-18-0013
09/28/2018
Utah Division of Securities
The Utah Division of Securities ("Division") alleged LPL Financial failed to comply with the regulatory requirements governing networking arrangements between Broker-Dealers and Credit Unions, approve the use of misleading sales and advertising materials, and other information provided to customers and the public, failed to follow and enforce its policies and procedures, and failed to reasonably supervise the business run through the Credit Union.
LPL Financial neither admits nor denies the Division's findings and conclusions, but consents to the sanctions imposed by the Division, which include cease and desist, censure, a fine in the amount of $200,000.00, and additional undertakings.
LPL Financial LLC
Administrative Consent Agreement and Order - No. SB-03-18
03/19/2018
District of Columbia Department of Insurance, Securities and Banking
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 District of Columbia residents.
Without admitting or denying the allegations, LPL agreed to pay a civil penalty in the amount of $10,934.13, offers of remediation, and undertakings.
LPL Financial LLC
Administrative Consent Order - No. 3006
10/01/2018
South Dakota Division of Insurance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the South Dakota Division of Insurance alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in South Dakota; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to South Dakota residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Securities Division of the New Mexico Regulation and Licensing Department
10/02/2018
Administrative Consent Order - Case No. 15-099-0049
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Securities Division of the New Mexico Regulation and Licensing Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in New Mexico; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to New Mexico residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - No. 336330
10/03/2018
State of Michigan, Department of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the State of Michigan, Department of Licensing & Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Michigan; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Michigan residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Proceeding - No. LS-17-2768
10/11/2018
Securities Division of the Mississippi Secretary of State's Office
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Securities Division of the Mississippi Secretary of State's Office alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Mississippi; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Mississippi residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Order No. S-17-0078-18-OR-01
10/24/2018
Arkansas Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Arkansas Securities Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Arkansas; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Arkansas residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. AP-18-12
11/07/2018
Missouri Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Missouri Securities Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Missouri; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Missouri residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - File No. INV 18-104
11/13/2018
Nevada Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Nevada Securities Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Nevada; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Nevada residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Agreement and Order - Docket No. 18-0091 (SEC-CAO)
11/08/2018
Commonwealth of Pennsylvania Department of Banking and Securities, Bureau of Sec
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Commonwealth of Pennsylvania Department of Banking and Securities, Bureau of Securities Compliance and Examinations (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC (LPL) failed to reasonably supervise its agents and employees regarding the sale of unregistered, non-exempt securities.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No. CO-18-8453-S
11/15/2018
State of Connecticut Department of Banking
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the State of Connecticut Department of Banking (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Connecticut; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Connecticut residents, including with respect to LPL's retention, use and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Final Order - No. 90555-S
11/16/2018
State of Florida, Office of Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the State of Florida, Office of Financial Regulation (Office) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Florida; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Florida residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings & conclusion of law contained in the Stipulation & Consent Agreement, and consented to the entry of the Agreement. LPL agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No Docket/Case Number
11/19/2018
California Department of Business Oversight
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the California Department of Business Oversight (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in California; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to California residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - Docket No. 18-032-S
11/20/2018
Vermont Department of Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Vermont Department of Financial Regulation (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Vermont; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Vermont residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No Docket/Case Number
12/03/2018
Alabama Securities Commission
The Alabama Securities Commission (Commission) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of Rule 830-x-3-.14(1)(a) of the Alabama Securities Commission's Administrative Code.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order by the Commission. LPL also agreed to pay the Commission a sum in the amount of $40,000.00.
LPL Financial LLC
Consent Agreement - Cause No. 18-0082 CA
12/03/2018
Indiana Securities Division
The Indiana Securities Division (Division) alleged that during the period of approximately 2013 through September 2017 (Relevant Period) LPL Financial LLC (LPL) failed to review certain emails of its Indiana agents and failed to conduct annual examinations for certain branch offices located in Indiana in contravention of 710 IAC 4-7-6(d)(1) (2017) and 710 IAC 4-7-6(d)(9) (2017).
LPL consented to the entry of a Consent Agreement by the Division. LPL also agreed to pay a sum of $450,000 and undertake an independent supervisory review of its Indiana operations related to email supervision review processes and branch examinations.
LPL Financial LLC
Consent Order - File No. 1800307
12/06/2018
Illinois Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Illinois Securities Department (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to cease and desist, pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - LS-17-2288
12/12/2018
Mississippi Securities Division
The Mississippi Securities Division (Division) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of Miss. Code. Ann. Section 75-71-411(c)(1) and Mississippi Securities Act Rules 5.15.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order by the Division. LPL also agreed to pay the Division a sum in the amount of $40,000.00.
LPL Financial LLC
Consent Order - Docket No. 2018-7-03
12/31/2018
Idaho Department of Finance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Idaho Department of Finance (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Idaho; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. 2018-CDS-062
01/10/2019
Colorado Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Colorado Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Colorado; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Order - Docket No. S-21062A-18-0365
01/11/2019
Arizona Corporation Commission
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Arizona Corporation Commission (Commission) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Arizona; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - No. S-16-0069-OR02
01/22/2019
Arkansas Securities Department
The Arkansas Securities Department (Department) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of Rule 306.01 of the Arkansas Securities Commissioner.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order by the Department. LPL also agreed to pay the Department a sum in the amount of $40,000.00.
LPL Financial LLC
Administrative Consent Order - File No. S-238691(LX)
01/22/2019
Wisconsin Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Wisconsin Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Wisconsin; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Stipulation and Consent Order - Docket No. SD-18-0041
01/24/2019
Utah Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Utah Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Utah; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Stipulation and Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No Docket/Case Number
01/28/2019
U.S. Virgin Islands Division of Banking, Insurance and Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the U.S. Virgin Islands Division of Banking, Insurance and Financial Regulation (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in the U.S. Virgin Islands; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. 2017-0591
01/31/2019
Maryland Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Maryland Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Maryland; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. SEU-2018-014
02/01/2019
Hawaii Department of Commerce and Consumer Affairs
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Hawaii Department of Commerce and Consumer Affairs (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Hawaii; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - No Docket/Case Number
02/01/2019
North Dakota Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the North Dakota Securities Department (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in North Dakota; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - Order No. SB-CO-10-18
02/01/2019
District of Columbia, Department of Insurance, Securities and Banking
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Government of the District of Columbia, Department of Insurance, Securities and Banking (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in the District of Columbia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Matter No. 20167652
02/14/2019
Securities Division of the Office of the Attorney General of South Carolina
The Securities Division of the Office of the Attorney General of South Carolina (Division) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of S.C. Code Ann. Section 35-1-411(c)(1) and S.C. Code of Regulations Section 13-405(A)(1).
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order by the Division. LPL also agreed to pay the Division a sum in the amount of $40,000.00.
LPL Financial LLC
Consent Order - No. INV2018-00022
03/04/2019
New Hampshire Bureau of Securities Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the New Hampshire Bureau of Securities Regulation (Bureau) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in New Hampshire; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Order No. S-18-2474-18-CO01
03/04/2019
Washington State Department of Financial Institutions, Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Washington State Department of Financial Institutions, Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Washington; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - No. 18-SC-002
02/18/2019
Rhode Island Division of Business Regulation Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Rhode Island Division of Business Regulation Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Rhode Island; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - File No. 52367
03/11/2019
Minnesota Department of Commerce
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Minnesota Department of Commerce (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Minnesota; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - ODS File No. 18-094
03/18/2019
Oklahoma Department of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Oklahoma Department of Securities(Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Oklahoma; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Final Order - Case No. S-18-0034
03/20/2019
Oregon Division of Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Oregon Division of Financial Regulation (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Oregon; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Final Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Matter No. 20181123
03/21/2019
Division of the Office of the Attorney General of South Carolina
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Securities Division of the Office of the Attorney General of South Carolina (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in South Carolina; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Agreement and Final Order, Case No. SEC-2018-147
04/05/2019
Office of the Commissioner of Securities and Insurance, Montana State Auditor
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Securities Division of the Office of the Office of the Commissioner of Securities and Insurance, Montana State Auditor alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Montana; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Final Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order, Matter No. 2019-10, Case No. 19-15384
04/08/2019
Maine Office of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Maine Office of Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Maine; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order, 17 SEC 053
04/08/2019
North Carolina Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), North Carolina Securities Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in North Carolina; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Docket No. 19E079, KSC No. 2018-6509
04/02/2019
Office of the Kansas Securities Commissioner
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Office of the Kansas Securities Commissioner alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Kansas; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order
04/10/2019
Nebraska Department of Banking & Finance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Nebraska Department of Banking & Finance alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Nebraska; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order, Order No. IC19-CAF-01
04/10/2019
Texas State Securities Board
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Texas State Securities Board alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Texas; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order, Order No. 17-170-S
04/16/2019
Alaska Division of Banking and Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Alaska Division of Banking and Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Alaska; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order
04/30/2019
New Jersey Bureau of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), New Jersey Bureau of Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in New Jersey; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order, Case No. SEC-2018-00027
04/22/2019
Virginia State Corporation Commission
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Virginia State Corporation Commission alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Virginia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements. Regarding the date of action, LPL initially received a Consent Order from the Commission dated April 8, 2019; however, it was the incorrect version of the Consent Order. The Commission sent a corrected version of the Consent Order, which the Firm learned of on or about June 3, 2019.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order, Order No. 18-04
05/20/2019
Wyoming Secretary of State
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Wyoming Secretary of State alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Wyoming; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order, Order No. 19-014
05/23/2019
Ohio Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Ohio Division of Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Ohio; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Division Case No. 98196
06/13/2019
Iowa Insurance Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Iowa Insurance Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Iowa; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Assurance of Discontinuance - Assurance No. 19-067
06/28/2019
Office of the Attorney General of the State of New York
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Office of the Attorney General of the State of New York alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in New York; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings contained in the Assurance of Discontinuance, and consented to the terms in the Assurance. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Order No. 19-016
07/10/2019
Tennessee Department of Commerce and Insurance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Tennessee Department of Commerce and Insurance alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Tennessee; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - Order No. 18-0018
07/22/2019
West Virginia Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), West Virginia Securities Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in West Virginia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Docket No. E-2019-0041
06/26/2019
Massachusetts Securities Division
During the relevant time period of March 1, 2013 to April 4, 2019, the Massachusetts Securities Division (the "Division") found LPL failed to timely register with the Division certain agents required to be registered in Massachusetts. LPL also failed to properly and timely amend Forms U4 and U5 for agents who were registered in Massachusetts that subsequently became materially inaccurate or in complete.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL agreed to cease and desist, censure, additional undertakings, and pay an administrative fine of $1,100,000.
LPL Financial LLC
Administrative Consent Order - No. ENSC-190782
08/06/2019
Georgia Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Georgia Securities Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Georgia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order
01/08/2020
Ohio Department of Insurance
The Ohio Department of Insurance ("Department") found LPL Financial LLC failed to timely report administrative actions to the Department, in violation of Section 3905.22(A) pursuant to Title 39 of the Revised Code.
LPL admitted to the allegations and agreed to pay a civil penalty in the amount of $2,500.00 and pay administrative costs in the amount of $500.00.
LPL Financial LLC
Consent Order - I-2019000029
07/30/2020
New Hampshire Bureau of Securities Regulation
The New Hampshire Bureau of Securities Regulation ("Bureau") conducted an investigation against Representative, Daniel Stokes, involving solicitation of unsecured promissory notes from LPL clients for a purported investment opportunity, which did not occur on LPL systems. The Bureau concluded Mr. Stokes defrauded investors in furtherance of the false investment opportunity. In connection with this investigation, the Bureau determined LPL Financial LLC ("LPL") failed to reasonably supervise Mr. Stokes, in violation of N.H. RSA 421-B:4-412 (D) (9).
Without admitting or denying the facts or allegations, LPL submitted an offer of settlement and agreed to cease and desist, $576,000 restitution, $275,000 fine, $75,000 investigation cost, $50,000 disgorgement, offers to clients, and undertakings.
N
Y
LPL Financial
Docket/Case Number: IC06-CAF-19
06/28/2006
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
10/26/2009
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
12/08/2009
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
07/12/2010
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
10/24/2011
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
12/06/2011
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
11/08/2011
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
08/11/2010
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
11/20/2007
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
12/30/2008
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
12/17/2013
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
11/04/2012
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
12/12/2012
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
06/30/2014
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
09/04/2014
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
10/31/2014
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
07/14/2015
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
07/31/2015
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
09/22/2015
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
10/01/2015
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
09/15/2015
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
11/04/2015
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
11/24/2015
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
11/23/2015
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
11/30/2015
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
11/24/2015
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
11/30/2015
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
11/24/2015
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
12/03/2015
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
12/03/2015
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
12/01/2015
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
12/03/2015
Alaska Division of Banking and Securitie
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
12/30/2015
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
12/30/2015
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
01/08/2016
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
12/21/2015
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
01/05/2016
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
12/21/2015
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
12/23/2015
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
12/29/2015
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
12/15/2015
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
01/29/2016
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
01/15/2016
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
02/09/2016
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
02/09/2016
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
02/18/2016
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
02/19/2016
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
02/26/2016
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
02/29/2016
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
03/02/2016
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
03/04/2016
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
03/11/2016
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
03/14/2016
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
03/30/2016
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
04/26/2016
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
04/29/2016
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
05/03/2016
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
06/30/2016
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
07/05/2016
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
07/20/2016
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
07/27/2016
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
08/25/2016
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
07/18/2016
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.
LPL Financial LLC
Consent Order
01/27/2017
Commonwealth of Massachusetts
The Firm entered into a Consent Order with the Commonwealth of Massachusetts, Enforcement Section of the Division, related to allegations that LPL advisor, Roger S. Zullo, fabricated the suitability profiles of numerous LPL clients, selling them scores of large, illiquid, unsuitable, high commission variable annuities, at substantial upfront profits to himself and LPL, in violation of Sections 101, 102, and 204(a)(2)(G) of the Act. The Enforcement Section further alleges that LPL failed in its responsibility to supervise Roger S. Zullo, in violation of Section 204(a)(2)(J).
Cease and desist, censure, a fine in the amount of $975,000.00, additional undertakings, restitution and disgorgement to be determined based on results of LPL Financials investigation and accounting.
LPL Financial LLC
Consent Order
04/26/2017
State of Maine Office 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 Maine residents.
Civil penalty in the amount of $11,939.46, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
05/01/2017
Vermont 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 Vermont residents.
Civil penalty in the amount of $ 11,074.81, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
05/04/2017
Massachusetts Securities Division
The Massachusetts Securities Division alleged that LPL Financial failed to supervise financial advisors located on credit union premises, including the supervision of certain compensation and certain aspects of disclosures related to its business conducted on the credit union premises. On May 2, 2017, LPL submitted an Offer of Settlement to the Division. LPL neither admitted nor denied the Statement of Facts and Violations of Law contained in the Consent Order related to an ongoing investigation by the Division's Registration, Inspections, Compliance and Examinations Section during the time period of December 27, 2011 to May 2, 2017.
Cease and desist, censure, removal of the credit union's DBA name; a comprehensive review of the Firm's policies, procedures, training, and processes related to the allegations; certain undertakings, and pay a fine in the amount of $1,000,000.
LPL Financial LLC
Consent Order
05/26/2017
Virginia Division of Securities and Retail Franchising
LPL consented to the findings that from January 1, 2008 through December 21, 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 Virginia residents.
Civil penalty in the amount of $28,095.38, cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
09/24/2017
The Secretary of State of North Carolina
The Secretary of State of North Carolina and Securities Administrator, alleged that LPL failed to reasonably supervise Charles Fackrell, one of its registered representatives, who unbeknownst to LPL, operated a Ponzi scheme in which he encouraged individuals to invest money in fictitious entities. Fackrell generally diverted the funds for personal expenses, although some funds were paid to investors to perpetuate the appearance of returns. After LPL was alerted to Fackrell's criminal and unapproved activities, it immediately investigated and terminated him. The Securities Administrator executed the Order on 09/24/2017, but LPL did not receive it until 10/09/2017.
Cease and desist, civil penalty in the amount of $25,000.00, and reimburse the Securities Division in the sum of $270,000.00 for investigative costs.
LPL Financial LLC
Consent Order
10/24/2017
New Jersey Bureau of Securities
The New Jersey Bureau of Securities alleged that during the period of January 1, 2008 through December 31, 2015 LPL failed to adequately supervise its representatives' sales of certain alternative investments to New Jersey residents and failed to make and maintain accurate books and records relating to the sale of certain alternative investment transactions. LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order by the Bureau.
Cease and desist, civil penalty of $950,000.00, remit $25,000.00 to New Jersey's Investor Education Fund, offers of remediation, and undertakings.
LPL Financial LLC
Consent Order
06/22/2018
Alabama Securities Commission
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Alabama Securities Commission (Commission) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to Alabama residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation for certain securities sold to Alabama residents, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Consent Order
06/12/2018
Massachusetts Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Massachusetts Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to Massachusetts residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring, and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation for certain securities sold to Massachusetts residents, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Consent Order
08/13/2018
Indiana Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Indiana Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Indiana; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Indiana residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order
08/27/2018
Puerto Rico Office of the Commissioner of Financial Institutions
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Puerto Rico of the Commissioner of Financial Institutions (OCFI) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Puerto Rico; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Puerto Rico residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order
09/11/2018
Louisiana Office of Financial Institutions
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Louisiana Office of Financial Institutions (OFI) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Louisiana; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Louisiana residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Adminstrative Consent Order
09/13/2018
Investor Protection Unit of the Delaware Department of Justice
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Investor Protection Unit (IPU) of the Delaware Department of Justice alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to reasonably supervise and maintain adequate systems to comply with state securities registration requirements, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Adminstrative Consent Order
09/13/2018
Kentucky Department of Financial Institutions
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Kentucky Department of Financial Institutions (DFI) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Kentucky; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Kentucky residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
Without admitting or denying the allegations, LPL agreed to (1) offers of remediation, (2) certain additional undertakings, and (3) pay a sum in the amount of $499,000.00.
LPL Financial LLC
Administrative Consent Order - NC File No. 14 SEC 035
03/26/2018
North Carolina 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 North Carolina residents.
Without admitting or denying the allegations, LPL agreed to pay the Division a total of $24,342.35 ($2,500 civil penalty and $21,842.35 for investigative costs), cease and desist, offers of remediation, and undertakings.
LPL Financial LLC
Stipulation and Consent Order - Docket No. SD-18-0013
09/28/2018
Utah Division of Securities
The Utah Division of Securities ("Division") alleged LPL Financial failed to comply with the regulatory requirements governing networking arrangements between Broker-Dealers and Credit Unions, approve the use of misleading sales and advertising materials, and other information provided to customers and the public, failed to follow and enforce its policies and procedures, and failed to reasonably supervise the business run through the Credit Union.
LPL Financial neither admits nor denies the Division's findings and conclusions, but consents to the sanctions imposed by the Division, which include cease and desist, censure, a fine in the amount of $200,000.00, and additional undertakings.
LPL Financial LLC
Administrative Consent Agreement and Order - No. SB-03-18
03/19/2018
District of Columbia Department of Insurance, Securities and Banking
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 District of Columbia residents.
Without admitting or denying the allegations, LPL agreed to pay a civil penalty in the amount of $10,934.13, offers of remediation, and undertakings.
LPL Financial LLC
Administrative Consent Order - Case No. 3006
10/01/2018
South Dakota Division of Insurance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the South Dakota Division of Insurance alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in South Dakota; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to South Dakota residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Securities Division of the New Mexico Regulation and Licensing Department
10/02/2018
Administrative Consent Order - Case No. 15-099-0049
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Securities Division of the New Mexico Regulation and Licensing Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in New Mexico; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to New Mexico residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
State of Michigan, Department of Securities
10/03/2018
Administrative Consent Order - No. 336330
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the State of Michigan, Department of Licensing & Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Michigan; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Michigan residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Proceeding - No. LS-17-2768
10/11/2018
Securities Division of the Mississippi Secretary of State's Office
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Securities Division of the Mississippi Secretary of State's Office alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Mississippi; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Mississippi residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Order No. S-17-0078-18-OR-01
10/24/2018
Arkansas Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Arkansas Securities Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Arkansas; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Arkansas residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. AP-18-12
11/07/2018
Missouri Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Missouri Securities Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Missouri; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Missouri residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - File No. INV 18-104
11/13/2018
Nevada Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc., the Nevada Securities Department alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC sold unregistered, non-exempt securities in Nevada; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Nevada residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structured related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Agreement and Order - Docket No. 18-0091 (SEC-CAO)
11/08/2018
Commonwealth of Pennsylvania Department of Banking and Securities, Bureau of Sec
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Commonwealth of Pennsylvania Department of Banking and Securities, Bureau of Securities Compliance and Examinations (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018, LPL Financial LLC (LPL) failed to reasonably supervise its agents and employees regarding the sale of unregistered, non-exempt securities.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No. CO-18-8453-S
11/15/2018
State of Connecticut Department of Banking
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the State of Connecticut Department of Banking (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Connecticut; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Connecticut residents, including with respect to LPL's retention, use and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Final Order - No. 90555-S
11/16/2018
State of Florida, Office of Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the State of Florida, Office of Financial Regulation (Office) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Florida; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Florida residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings & conclusion of law contained in the Stipulation & Consent Agreement, and consented to the entry of the Agreement. LPL agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No Case/Docket Number
11/19/2018
California Department of Business Oversight
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the California Department of Business Oversight (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in California; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to California residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - Docket No. 18-032-S
11/20/2018
Vermont Department of Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Vermont Department of Financial Regulation (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Vermont; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL to Vermont residents, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum in the amount of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No Case/Docket Number
12/03/2018
Alabama Securities Commission
The Alabama Securities Commission (Commission) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of Rule 830-x-3-.14(1)(a) of the Alabama Securities Commission's Administrative Code.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order by the Commission. LPL also agreed to pay the Commission a sum in the amount of $40,000.00.
LPL Financial LLC
Consent Agreement - Cause No. 18-0082 CA
12/03/2018
Indiana Securities Division
The Indiana Securities Division (Division) alleged that during the period of approximately 2013 through September 2017 (Relevant Period) LPL Financial LLC (LPL) failed to review certain emails of its Indiana agents and failed to conduct annual examinations for certain branch offices located in Indiana in contravention of 710 IAC 4-7-6(d)(1) (2017) and 710 IAC 4-7-6(d)(9) (2017).
LPL consented to the entry of a Consent Agreement by the Division. LPL also agreed to pay a sum of $450,000 and undertake an independent supervisory review of its Indiana operations related to email supervision review processes and branch examinations.
LPL Financial LLC
Consent Order - File No. 1800307
12/06/2018
Illinois Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Illinois Securities Department (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities by LPL, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to cease and desist, pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - LS-17-2288
12/12/2018
Mississippi Securities Division
The Mississippi Securities Division (Division) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of Miss. Code. Ann. Section 75-71-411(c)(1) and Mississippi Securities Act Rules 5.15.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order by the Division. LPL also agreed to pay the Division a sum in the amount of $40,000.00.
LPL Financial LLC
Consent Order - Docket No. 2018-7-03
12/31/2018
Idaho Department of Finance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Idaho Department of Finance (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Idaho; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. 2018-CDS-062
01/10/2019
Colorado Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Colorado Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Colorado; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL"s response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Order - Docket No. S-21062A-18-0365
01/11/2019
Arizona Corporation Commission
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Arizona Corporation Commission (Commission) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Arizona; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Administrative Consent Order - No. S-16-0069-OR02
01/22/2019
Arkansas Securities Department
The Arkansas Securities Department (Department) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of Rule 306.01 of the Arkansas Securities Commissioner.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order by the Department. LPL also agreed to pay the Department a sum in the amount of $40,000.00.
LPL Financial LLC
Administrative Consent Order - File No. S-238691(LX)
01/22/2019
Wisconsin Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Wisconsin Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Wisconsin; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Stipulation and Consent Order - Docket No. SD-18-0041
01/24/2019
Utah Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Utah Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Utah; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Stipulation and Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - No Docket/Case Number
01/28/2019
U.S. Virgin Islands Division of Banking, Insurance and Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the U.S. Virgin Islands Division of Banking, Insurance and Financial Regulation (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in the U.S. Virgin Islands; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. 2017-0591
01/31/2019
Maryland Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Maryland Division of Securities (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Maryland; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Case No. SEU-2018-014
02/01/2019
Hawaii Department of Commerce and Consumer Affairs
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Hawaii Department of Commerce and Consumer Affairs (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Hawaii; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Adminstrative Consent Order - No Docket/Case Number
02/01/2019
North Dakota Securities Department
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the North Dakota Securities Department (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in North Dakota; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Adminstrative Consent Order - Order No. SB-CO-10-18
02/01/2019
District of Columbia, Department of Insurance, Securities and Banking
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Government of the District of Columbia, Department of Insurance, Securities and Banking (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in the District of Columbia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Administrative Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and undertakings.
LPL Financial LLC
Consent Order - Matter No. 20167652
02/14/2019
Securities Division of the Office of the Attorney General of South Carolina
The Securities Division of the Office of the Attorney General of South Carolina (Division) alleged that during the period approximately January 2012 to March 2016 (Relevant Period), certain non-traded real estate investment trusts and non-traded business development companies were inaccurately classified as equities on certain client account statements in violation of S.C. Code Ann. Section 35-1-411(c)(1) and S.C. Code of Regulations Section 13-405(A)(1).
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order by the Division. LPL also agreed to pay the Division a sum in the amount of $40,000.00.
LPL Financial LLC
Consent Order - No. INV2018-00022
03/04/2019
New Hampshire Bureau of Securities Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the New Hampshire Bureau of Securities Regulation (Bureau) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in New Hampshire; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Order No. S-18-2474-18-CO01
03/04/2019
Washington State Department of Financial Institutions, Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Washington State Department of Financial Institutions, Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Washington; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - No. 18-SC-002
02/18/2019
Rhode Island Division of Business Regulation Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Rhode Island Division of Business Regulation Securities Division (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Rhode Island; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - File No. 52367
03/11/2019
Minnesota Department of Commerce
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Minnesota Department of Commerce (Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Minnesota; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - ODS File No. 18-094
03/18/2019
Oklahoma Department of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Oklahoma Department of Securities(Department) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Oklahoma; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Matter No. 20181123
03/21/2019
Securities Division of the Office of the Attorney General of South Carolina
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Securities Division of the Office of the Attorney General of South Carolina (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in South Carolina; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Final Order - Case No. S-18-0034
03/20/2019
Oregon Division of Financial Regulation
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Oregon Division of Financial Regulation (Division) alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Oregon; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Final Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Agreement and Final Order, Case No. SEC-2018-147
04/05/2019
Office of the Commissioner of Securities and Insurance, Montana State Auditor
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Securities Division of the Office of the Office of the Commissioner of Securities and Insurance, Montana State Auditor alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Montana; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Agreement and Final Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional und
LPL Financial LLC
Administrative Consent Order, Matter No. 2019-10, Case No. 19-15384
04/08/2019
Maine Office of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Maine Office of Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Maine; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order, 17 SEC 053
04/08/2019
North Carolina Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), North Carolina Securities Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in North Carolina; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Docket No. 19E079, KSC No. 2018-6509
04/02/2019
Office of the Kansas Securities Commissioner
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Office of the Kansas Securities Commissioner alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Kansas; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order
04/10/2019
Nebraska Department of Banking & Finance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Nebraska Department of Banking & Finance alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Nebraska; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order, Order No. IC19-CAF-01
04/10/2019
Texas State Securities Board
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Texas State Securities Board alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Texas; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order, Order No. 17-170-S
04/16/2019
Alaska Division of Banking and Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Alaska Division of Banking and Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Alaska; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order
04/30/2019
New Jersey Bureau of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), New Jersey Bureau of Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in New Jersey; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order, Case No. SEC-2018-00027
04/22/2019
Virginia State Corporation Commission
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Virginia State Corporation Commission alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Virginia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements. Regarding the date of action, LPL initially received a Consent Order from the Commission dated April 8, 2019; however, it was the incorrect version of the Consent Order. The Commission sent a corrected version of the Consent Order, which the Firm learned of on or about June 3, 2019.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order, Order No. 18-04
05/20/2019
Wyoming Secretary of State
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Wyoming Secretary of State alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Wyoming; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order, Order No. 19-014
05/23/2019
Ohio Division of Securities
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Ohio Division of Securities alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Ohio; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Division Case No. 98196
06/13/2019
Iowa Insurance Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Iowa Insurance Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Iowa; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Assurance of Discontinuance - Assurance No. 19-067
06/28/2019
Office of the Attorney General of the State of New York
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), the Office of the Attorney General of the State of New York alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in New York; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings contained in the Assurance of Discontinuance, and consented to the terms in the Assurance. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Order No. 19-016
07/10/2019
Tennessee Department of Commerce and Insurance
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Tennessee Department of Commerce and Insurance alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Tennessee; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Administrative Consent Order - Order No. 18-0018
07/22/2019
West Virginia Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), West Virginia Securities Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in West Virginia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order - Docket No. E-2019-0041
06/26/2019
Massachusetts Securities Division
During the relevant time period of March 1, 2013 to April 4, 2019, the Massachusetts Securities Division (the "Division") found LPL failed to timely register with the Division certain agents required to be registered in Massachusetts. LPL also failed to properly and timely amend Forms U4 and U5 for agents who were registered in Massachusetts that subsequently became materially inaccurate or in complete.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Order, and consented to the entry of the Order. LPL agreed to cease and desist, censure, additional undertakings, and pay an administrative fine of $1,100,000.
LPL Financial LLC
Administrative Consent Order - No. ENSC-190782
08/06/2019
Georgia Securities Division
In connection with an investigation conducted by a multistate task force coordinated among members of the North American Securities Administrators Association Inc. (NASAA), Georgia Securities Division alleged that during the period of approximately October 1, 2006 through May 1, 2018 (Relevant Period), LPL Financial LLC (LPL) sold unregistered, non-exempt securities in Georgia; failed to reasonably supervise and maintain adequate systems to prevent the sale of unregistered, non-exempt securities, including with respect to LPL's retention, use, and subsequent cancellation of certain third-party services utilized for compliance with state securities registration requirements; certain other deficiencies within LPL's compliance structure related to LPL's controls, monitoring and reporting tools, and escalation protocols in relation to LPL's response to compliance issues resulting from such failure; and LPL's failure to maintain certain books and records to ensure full and proper compliance for state securities registration requirements.
LPL neither admitted nor denied the findings of fact and conclusions of law contained in the Consent Order, and consented to the entry of the Order. LPL also agreed to pay a sum of $499,000.00, offers of restitution, and additional undertakings.
LPL Financial LLC
Consent Order
01/08/2020
Ohio Department of Insurance
The Ohio Department of Insurance ("Department") found LPL Financial LLC failed to timely report administrative actions to the Department, in violation of Section 3905.22(A) pursuant to Title 39 of the Revised Code.
LPL admitted to the allegations and agreed to pay a civil penalty in the amount of $2,500.00 and pay administrative costs in the amount of $500.00.
LPL Financial LLC
Consent Order - I-2019000029
07/30/2020
New Hampshire Bureau of Securities Regulation
The New Hampshire Bureau of Securities Regulation ("Bureau") conducted an investigation against Representative, Daniel Stokes, involving solicitation of unsecured promissory notes from LPL clients for a purported investment opportunity, which did not occur on LPL systems. The Bureau concluded Mr. Stokes defrauded investors in furtherance of the false investment opportunity. In connection with this investigation, the Bureau determined LPL Financial LLC ("LPL") failed to reasonably supervise Mr. Stokes, in violation of N.H. RSA 421-B:4-412 (D) (9).
Without admitting or denying the facts or allegations, LPL submitted an offer of settlement and agreed to cease and desist, $576,000 restitution, $275,000 fine, $75,000 investigation cost, $50,000 disgorgement, offers to clients, and undertakings.
Y
LPL Financial
Order of Revocation
02/13/2015
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.
N
Y
LPL Financial
Acceptance, Waiver and Consent
05/21/2013
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.
Y
PLFS (N/K/A LPL Financial)
Acceptance, Waiver and Consent
06/04/1980
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
02/13/2003
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
03/27/2003
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
02/12/2004
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
10/11/2004
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
11/30/2004
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
06/08/2005
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
11/14/2005
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
12/19/2005
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
01/06/2006
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
12/21/2006
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
04/17/2007
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
09/04/2009
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
01/20/2011
FINRA
Allegations involved review of e-mails.
Resulted in a censure and fine of $100,000.00.
LPL Financial
Acceptance, Waiver and Consent
01/20/2011
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
01/06/2011
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
12/22/2010
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
06/03/2008
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
06/08/2011
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
06/26/2012
FINRA
Allegations of trade reporting violations.
Matter resulted in censure and $17,000.00 fine.
LPL Financial
Acceptance, Waiver and Consent
07/26/2011
FINRA
Allegations of trade reporting violations.
Matter resulted in censure and $22,500.00 fine.
LPL Financial
Acceptance, Waiver and Consent
05/21/2013
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
05/16/2013
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
12/31/2012
FINRA
Allegations of inadequate supervision of mutual fund prospectus delivery to customers.
Fine of $400,000.00.
LPL Financial
Acceptance, Waiver and Consent
05/06/2015
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
07/06/2015
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.
LPL Financial LLC
Acceptance, Waiver and Consent - No. 2016050751901
10/29/2018
FINRA
Through three distinct investigations, FINRA found that LPL Financial (1) failed to establish and implement an AML Program reasonably designed to detect and cause the reporting of potentially suspicious activity, in violation of FINRA Rules 3310(A) and 2010, (2) failed to amend Forms U4 and U5 violating Article V, Section 2 and 3 of FINRA's By-Laws and FINRA Rule 2010, and (3) failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to achieve compliance with Form U4 and U5 reporting requirements, in violation of FINRA Rules 3110 and 2010.
Without admitting or denying the findings, LPL accepted and consented to the entry of findings. LPL consented to the sanctions, which included a fine in the amount of $2,750,000.00, censure, and additional undertakings.
LPL Financial LLC
Acceptance, Waiver and Consent - No. 2014043539001
12/21/2016
FINRA
Without admitting or denying the findings, LPL Financial LLC ("The Firm") consented to the sanctions and to the entry of findings that it failed to maintain over 18.3 million electronic communications in non-erasable and no re-writable format, known as WORM ("write once, read many") format. The findings stated that the WORM format is intended to prevent the alteration or destruction of broker dealer records maintained on electronic storage media. In addition, the Firm failed to retain check registers in WORM format. The findings also stated that the Firm's written supervisory procedures failed to have an adequate supervisory process concerning WORM compliance.
The firm was censured and fined $750,000.00.
LPL Financial LLC
Acceptance, Waiver and Consent - No. 2015045887301
12/21/2016
FINRA
Without admitting or denying the findings, LPL Financial LLC ("The Firm") consented to the sanctions and to the entry of findings that it failed to send and create records that it had sent to customers, more than 1.6 million account notices required under Rule 17a-3(a)(17) of the Exchange Act. The Firm is required to send these account notices to customers at 36 month intervals for each account in which a suitability determination was made. Over a seven-year period, the Firm failed to send over 25 percent of the required notices. In addition, the Firm failed to establish, maintain, and enforce a supervisory system and written supervisory procedures reasonably designed to achieve compliance with applicable laws and regulations in relation to the creation and distribution of such account records.
The firm was censured, fined $900,000.00, and consented to additional undertakings to review policies and procedures.
LPL Financial LLC
Acceptance, Waiver and Consent - No. 2015045703001
02/16/2018
FINRA
From January 2010 through at least December 2016, FINRA alleged that LPL Financial failed to reasonably supervise the sale of certain Brokered Certificates of Deposit ("Brokered CDs"), which the Firm characterized as non-security CDs because they were FDIC insured instruments. The Firm allegedly failed to ensure that (1) its Registered Representatives were trained on all material risks and features of Brokered CDs and (2) adequately disclose all material risks and features of Brokered CDs to customers. Without admitting and denying the findings, LPL Financial accepted and consented to the entry of findings.
The firm was censured, fined $375,000.00, and remediated losses of $75,000.00.
LPL Financial LLC
Acceptance, Waiver and Consent - No. 2018058621001
12/26/2019
FINRA
During the relevant time period of January 1, 2014 through September 30, 2018, LPL Financial LLC ("Firm") did not establish reasonable systems or procedures related to the obligation to timely transfer control over the custodial property to the beneficiary of Uniform Transfers to Minor Act ("UTMA") accounts. As a result, UTMA account custodians authorized transactions in at least 5,249 UTMA accounts held at LPL in which the beneficiaries had reached the age of trust termination. Accordingly, the Firm failed to establish and maintain a system, and establish, maintain, and enforce written supervisory procedures with respect to its Uniform Gift to Minors Act and/or UTMA accounts.
Without admitting or denying the findings, the Firm agreed to a censure, a $300,000.00 fine, and undertakings which includes certification the Firm has completed a review of its policies, systems, and procedures.
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Y
N/A
N/A
12/01/1989
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
12/01/2006
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
07/27/2007
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
11/02/2011
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
10/18/2011
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
11/05/2013
N/A
Claim for misappropriation of funds by a former registered representative.
$1,300,000.00 claim paid.
N
Steve Morrison
617-897-4095
Senior Vice President, Associate Counsel
09/15/2020