Articles Tagged with LPL Financial

The Department of Market Regulation of the Financial Industry Regulatory Authority (FINRA) received a Letter of Acceptance, Waiver and Consent (AWC) from LPL Financial LLC (LPL Financial) for allegedly failing to execute several trade orders fully and promptly, reporting improper data and failing to properly supervise.

The Department of Market Regulation conducted two reviews of LPL Financial in 2012 to examine its trading and reporting methods. During its Trading and Market Making Surveillance (TMMS) review, FINRA found that in four instances, LPL Financial failed to execute orders fully and promptly. During the review, FINRA also found that LPL Financial transmitted to OATS eights reports that contained inaccurate, incomplete, or improperly formatted data. Additionally, the TMMS review found that LPL Financial failed to transmit two Reportable Order Events to OATS and failed to show the correct order receipt time on the memorandum of ten brokerage firms.

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The Department of Market Regulation of the Financial Industry Regulatory Authority (FINRA) received a Letter of Acceptance, Waiver and Consent (AWC) from LPL Financial LLC (LPL Financial) for allegedly failing to report securities transactions and failing to show the correct time of execution of several brokerage orders.

The Department of Market Regulation conducted two reviews on LPL Financial in 2010 regarding the firm’s compliance with Municipal Securities Rulemaking Board (MSRB) and Trade Reporting and Compliance Engine (TRACE) requirements.

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FINRA censured and ordered LPL Financial LLC (LPL Financial) to pay $6.3 million for failures related to sales charge waivers. LPL Financial submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for the alleged widespread supervisory failures.

LPL Financial is a brokerage and investment advisory firm with a principal place of business in Boston, Massachusetts. LPL Financial has been conducting securities business related activities since 1973. LPL Financial has over eighteen thousand registered representatives operating from nearly eleven thousand branch office locations.

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Emily Vitale of Indian Rocks Beach, Florida, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly falsifying documents resulting in faulty books and records.

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The Department of Market Regulation of the Financial Industry Regulatory Authority (FINRA) received a Letter of Acceptance, Waiver and Consent (AWC) from LPL Financial LLC (LPL Financial) for allegedly failing to report securities transactions and failing to show the correct time of execution of several brokerage orders.

The Department of Market Regulation conducted two reviews on LPL Financial in 2010 regarding the firm’s compliance with Municipal Securities Rulemaking Board (MSRB) and Trade Reporting and Compliance Engine (TRACE) requirements.

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Raymond Daniel Schmidt, a former registered representative with the Oceanside, California branch of LPL Financial LLC (LPL Financial), consented to, but did not admit to or deny, the sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he borrowed over $2.25 million from customers, failed to disclose his outside business activity, and falsely reported, in several firm questionnaires, his involvement in this misconduct.

Without admitting or denying FINRA’s findings, Raymond Schmidt, of Oceanside, California, consented to the sanctions and to the findings that he borrowed more than $2.25 million from seven LPL Financial customers, in violation of FINRA Rule 3240, which prohibits registered representatives from borrowing or lending money to customers unless permitted under the firm’s rules. Mr. Schmidt allegedly borrowed the money from the LPL customers for the purpose of constructing a vacation property in Hawaii. Further, FINRA found that Raymond Schmidt failed to notify his member firm of his involvement in this outside business activity. Continue Reading

LPL Financial LLC (LPL Financial) was fined $11.7 million by the Financial Industry Regulatory Authority (FINRA) for failing to maintain a proper supervisory system with respect to the sales of complex investment products, such as exchange-traded funds (ETFs), variable annuities, mutual funds, and non-traded real estate investment trusts.

Without admitting or denying the findings, LPL Financial consented to FINRA’s sanctions and findings that if failed to enforce its supervisory procedures for the sales of non-traditional ETFs, such as leveraged, inverse, and inverse-leveraged ETFs. Specifically, FINRA found that LPL Financial failed to enforce allocation limits with respect to customers’ investment objectives in its sales of non-traditional ETFs. LPL also failed to ensure that some of its registered representatives were adequately trained to sell the ETFs. Continue Reading

Marc Halan Baldinger, a former broker with the Stuart, Florida branch of LPL Financial LLC (LPL Financial), submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he participated in private securities transactions without the necessary written approval from his employer.

FINRA found that Marc Baldinger assisted 20 clients, who invested a combined total of more than $12 million in Government National Mortgage Association Interest Only bonds (GNMA I/Os), in establishing accounts with other brokerage firms. According to FINRA, Mr. Baldinger received approximately $233,427 in compensation for his role in the sales of the GNMA I/Os; and all of these securities transactions were without the approval of his member firm, LPL Financial. FINRA also found that Mr. Baldinger failed to disclose his position as a managing partner of two limited liability companies, that he failed to disclose that he had opened an account with a broker dealer that was not LPL, and that he also failed to disclose to the non-LPL broker dealer that he was a registered representative. Continue Reading

Jodie Linn Miller, a former broker with Tampa, Florida based LPL Financial, Inc. (LPL) and VALIC Financial Advisors, Inc. (VALIC), submitted a letter of acceptance, waiver, and consent in which she consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that she participated in unauthorized sales of unregistered Tri-Med securities to 14 investors.

FINRA found that Jodie Miller, of St. Petersburg, Florida, participated in the sale of unregistered Tri-Med notes to 14 investors. The Tri-Med notes ranged from $10,000 to $150,000 and Ms. Miller allegedly received approximately $38,225 in commissions from Tri-Med for the sales. According to FINRA, Ms. Miller neglected to tell both LPL and VALIC about her involvement with Tri-Med, nor did she obtain the necessary approval from the member firms to sell the unregistered Tri-Med notes. Continue Reading

Robert Charles Mangold, a former registered representative with Financial Network Investment Corporation (Financial Network) and LPL Financial LLC (LPL) submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) sanction and findings that he solicited and received $56,000 in loans from two customers. Continue Reading