LPL Financial CEO Apologizes for Compliance Failures

LPL Financial CEO, Mark Casady, has apologized to shareholders for taking so long to straighten out LPL’s compliance problems. LPL is the country’s largest independent broker-dealer and it has paid millions of dollars in fines, restitution payments and settlements with regulators. LPL has disclosed that it expects to incur up to $23 million in charges – 18 million more than previously anticipated – to resolve regulatory matters such as fines and restitution. LPL has been cited for violations relating to sales of real estate investment trusts (REITs) and variable annuities. Over the past several years, numerous retail investors also have filed FINRA arbitration claims against brokerage firms relating to these types of investment products. Those claims often involve allegations of unsuitable investment recommendations and misrepresentations or omissions.

Casady appeared to cast some of the blame on the fact that regulators are scrutinizing brokerage firm sales practices more closely, something that our law firm believes was sorely needed. He also expressed that LPL is about 60% of the way through its various regulatory problems and that additional fines may be forthcoming.

Investors who have lost money with LPL Financial should consider contacting a FINRA arbitration lawyer to discuss claims that they may have to recover their investment losses.

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