LPL wants bigger voice in Washington

The independent broker-dealer is set to open a public affairs office in the nation's capital in response to increased federal regulation.
SEP 25, 2014
Increasing federal financial regulation has prompted LPL Financial to get closer to the action by opening a public affairs office in the nation's capital, the firm announced Wednesday. “Our company and industry face an array of complex and rapidly changing challenges in the regulatory and legislative arena,” David P. Bergers, LPL managing director for legal and government relations, said in a statement. Nicole S. Petrosino has been appointed vice president and head of federal government relations. Her first task will be to set up the LPL office in Washington. “Nicole's deep experience in Washington, D.C. will be an invaluable asset as we seek to promote regulations and policies that advance the interests of investors,” Mr. Bergers said. Prior to joining LPL, Ms. Petrosino was vice president of government relations at MasterCard. From 2009-12, she was director of government relations at TIAA-CREF. In another government relations move Tuesday, LPL appointed John Cronin vice president and head of state government relations. Before joining LPL in March as a supervision manager, Mr. Cronin was Vermont securities director from 2008-14. A former financial adviser, Mr. Cronin's “regulatory and financial services background will help bolster the capabilities of our talented and growing [government relations] practice,” Mr. Bergers said. Mr. Cronin was in Indianapolis earlier this week at the North American Securities Administrators Association annual conference. A former head of the NASAA broker-dealer section, he was active for many years in the organization. LPL has run afoul of state and federal regulators over the last couple years. In late March, the Financial Industry Regulatory Authority Inc., the broker-dealer self-regulator, fined LPL $950,000 for supervisory deficiencies related to the sales of alternative investment products. In May 2013, Finra fined LPL $7.5 million for 35 separate significant e-mail failures. In December 2012, Massachusetts sued LPL over broker sales practices related to real estate investment trusts. That case has since been settled. Last summer, LPL established an internal oversight system for some of its 13,800 advisers. Those who operate as a single-person office, about 2,000 advisers, can join a multi-person Office of Supervisory Jurisdiction, or they can transition to home office supervision. In the 2014 election cycle, which began in January 2013, LPL has raised $342,649 for its political action committee through July 31, according to the Federal Election Commission. It has contributed $233,853 to lawmakers' campaigns.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.