LPL Settlement with Massachusetts Securities Division

Last Edited by: LPL Financial

Last Updated: June 26, 2019

LPL Financial Office building

Today, LPL agreed to a settlement with the Massachusetts Securities Division (MSD) on compliance matters primarily related to two issues – licensing of advisors and supervisors and late reportings. The first matter involves an examination of licensing of advisors and supervisors in Massachusetts.  The second matter is similar to LPL’s settlement last year with FINRA on complaint handling and late reportings. The MSD focused on late Form U4 and U5 disclosures for MA-based advisors.

As part of the settlement, the firm will pay a fine in the amount of $1.1 million and perform a review of certain internal controls. The time period covers 2013-2019. The MSD specifically called out LPL's cooperation with their investigation in resolving this matter and provided context that it is more broadly reviewing similar licensing practices in Massachusetts.

“We continue to enhance our controls around timeliness of regulatory reportings and licensing. This is part of our ongoing focus on effective risk management and compliance practices that protect our advisors and their investors,” said Michelle Oroschakoff, managing director and chief Legal officer, LPL Financial.