LPL Agrees to FINRA Settlement Over UGMA/UTMA Practices

Last Edited by: LPL Financial

Last Updated: December 26, 2019

LPL Announces Agreement to FINRA Settlement

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.