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

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.

Latest News

Crypto has arrived in the brokerage account but what does it mean for advisors?
Crypto has arrived in the brokerage account but what does it mean for advisors?

Prometheum's Aaron Kaplan on why clearing ETH inside a US brokerage account changes the conversation and what still needs to happen before adoption scales.

Technology Is Moving Fast. Adoption Shouldn’t Be Rushed
Technology Is Moving Fast. Adoption Shouldn’t Be Rushed

The tools are evolving rapidly, but in wealth management, the real challenge isn’t access. It’s integration, security, and discipline.

Lawyer exits case of former JPMorgan Chase banker whose sexual assault claims went viral
Lawyer exits case of former JPMorgan Chase banker whose sexual assault claims went viral

Chirayu Rana’s lawsuit has garnered massive attention on Wall Street.

Schwab advisor arrested for domestic violence charges
Schwab advisor arrested for domestic violence charges

Terrance L. Hayes was arrested April 20 and charged with two felonies.

Most Americans are at risk of outliving their retirement savings
Most Americans are at risk of outliving their retirement savings

People are living longer, but new research warns that many may outlive their savings.

SPONSORED When Growth Outruns the System

According to Flyer Financial Technologies, rising portfolio complexity is exposing the limits of legacy infrastructure and widening the gap between automation and reality

SPONSORED Why strategy matters more than performance

In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.