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.
