LPL Announces Agreement to FINRA Settlement

LPL Agrees to Settlement With FINRA Over Certain UGMA/UTMA Practices

December 26, 2019

LPL Financial

Today, LPL agreed to a settlement with the Financial Industry Regulatory Authority (FINRA) on a matter primarily related to our systems and procedures related to Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts.

We remain focused on effective compliance practices that protect our advisors and their investors.

- Michelle Oroschakoff, managing director and chief legal officer

Specifically, LPL’s settlement related to our notification and proactive support of the custodian of the trust, and that person’s obligation to manage trust termination of UGMA/UTMA accounts when beneficiaries reach the age of trust termination. As part of the settlement, we’ll pay a fine in the amount of $300,000. Importantly, this settlement is based entirely on LPL internal controls and does not relate to any investor harm.   

“We continue to enhance our controls to support custodians’ obligations to manage trust termination of UGMA and UTMA accounts. We remain focused on effective compliance practices that protect our advisors and their investors,” said Michelle Oroschakoff, managing director and chief legal officer, LPL Financial.