Latest News
LPL FINED $950,000.00 FOR FAILING TO SUPERVISE ITS SALES OF
ALTERNATIVE INVESTMENTS
The Financial Industry Regulatory Authority (“FINRA”) recently fined LPL Financial Services LLC $950,000.00 for failures to supervise its sales of alternative investments from January 2008 through July 1, 2012. In addition, FINRA issued findings that LPL failed to properly train its supervisory personnel concerning state suitability requirements imposed when selling such investments. As outlined in FINRA’s March 24, 2013 News Release, sales of alternative investments are subject to not only traditional suitability regulations and laws, but are further subject to concentration limits set by various states. FINRA determined that LPL failed to train personnel concerning compliance with the laws of various states. Instead, during part of the relevant time, LPL relied upon automated supervisory systems that contained flawed programming and were also outdated. The alternative investments included non-traded REITS, business development companies (BDCs), real estate limited partnerships, oil and gas limited partnerships, and other illiquid pass-through securities.
A full copy of FINRA’s disciplinary letter of Acceptance, Waiver and Consent against LPL can be found on FINRA’s website, or by following the prompts after clicking on FINRA’s Disciplinary Actions Online database.
If you have questions about your own alternative investment losses, or about this article, please contact birgitta@investors-rights.com.SEC News
- SEC Names Nathaniel H. Benjamin as Director of the Office of Minority and Women Inclusion
- SEC Charges Audit Firm BF Borgers and Its Owner with Massive Fraud Affecting More Than 1,500 SEC Filings
- SEC Small Business Advisory Committee to Discuss Regulation Crowdfunding and the State of Angel Investing
- SEC Staff Publishes New Registered Fund Statistics Report
- SEC’s Division of Investment Management to Host Second Annual Conference on Emerging Trends in Asset Management
- SEC Issues Second Fee Rate Advisory for Fiscal Year 2024
- SEC Charges Five Investment Advisers for Marketing Rule Violations
- Register for the SEC’s 43rd Annual Small Business Forum April 16-18
- SEC Charges Advisory Firm Senvest Management with Recordkeeping and Other Failures
- SEC Encourages Investors to Plan for Their Financial Future During Financial Capability Month
SEC Litigation
- Ahmed Alomari and MCM Consulting
- Robert M. Thompson; Financial Freedom Foundation d/b/a F3 Mastermind; Brandon Stucki
- Daniel E. Levin
- Jack B. Blount
- Sanjay Bhandari, Vinod Singhi, Rakesh Jain
- Martin Sumichrast
- Tri-Bridge Ventures, LLC and John Francis Forsythe, III
- Mario E. Rivero
- Kevin Crotty
- Craig Allen
Business News
Error: Feed has an error or is not valid