Connecticut sanctions financial firm $500K

November 20, 2018

LPL Financial will pay $500,000 to the Connecticut Department of Banking and offer to repurchase securities it sold here, as part of a settlement with states nationally over the sale of unregistered securities.

LPL has its principle office in Boston, with the company having dozens of financial advisor affiliates in southwestern Connecticut.

Regulators with the North American Securities Administrators Association and the commonwealth of Massachusetts stated LPL allowed lapses since 2006 in a system it had to ensure compliance with securities laws.

Under its agreement with the Connecticut Department of Banking, LPL agreed to send offer letters to clients to repurchase any securities it sold with interest, or otherwise pay damages if those securities were subsequently sold by those investors. LPL is required to report by mid-December the total amount of securities it has offered to repurchase in Connecticut.

Alex.Soule@scni.com; 203-842-2545; @casoulman

Update hourly