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.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

How InvestmentNews picks its Women to Watch winners

The process is laborious and exacting, but well worth it. The end result each year is an impressive group of women in the advice industry from whom others can draw inspiration.

Latest news & opinion

Some good news about female recruitment in financial advice

Each of four core advisory positions tracked in InvestmentNews' benchmarking study has seen an uptick in women entrants.

10 ETFs that are up more than 35% this year

Amid the stock market carnage, there are still some funds posting big gains.

10 biggest HSA providers rated

Morningstar rated the largest plan providers as investment and spending vehicles.

Morningstar: DOL fiduciary rule reduces inflows to mutual funds with high loads

With the measure's demise, will the SEC's advice reform sustain the momentum?

6 tax strategies for year-end planning

How to help clients maximize their wealth using specific tax strategies before the end of the year.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print