Galvin announces settlement with LPL allowing investors to get their money back

Settlement is part of a $26 million agreement between the independent broker dealer and the North American Securities Administrators Association

Jun 13, 2018 @ 2:59 pm

By InvestmentNews

Secretary of the Commonwealth William F. Galvin announced Wednesday that his office had reached a settlement with LPL Financial that allow Massachusetts investors who were improperly sold securities by the firm over a 12-year period to get their money back.

The settlement was reached after Mr. Galvin helped lead a multi-state effort to secure a $26 million settlement with LPL. As a result of the settlement, LPL will be required to buy back the illegally sold securities from investors not only in Massachusetts, but nationwide, with interest.

"This agreement will give Massachusetts investors who were misled when they were offered these unregistered securities the chance to get their money back, with interest, and re-invest it in a way that works best for them," he said.

The settlement with LPL was reached after a North American Securities Administrators Association task force led by Massachusetts and Alabama determined LPL had been negligent in its duty to supervise its agents and employees and to prevent the sale of unregistered securities to its customers over the past 12 years.

Customers who were sold unregistered, non-exempt securities since October 2006 will be offered the full amount paid, plus 3% interest. LPL has also agreed to a full review to assess its compliance with all state securities requirements.

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