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Broker-Dealer Settles Multiple State Charges of Selling Unregistered Securities

A broker-dealer settled multi-state charges, coordinated by the North American Securities Administrators Association ("NASAA"), for selling unregistered non-exempt securities.

According to the NASAA investigation, LPL Financial LLC ("LPL") (i) failed to develop and maintain systems to prevent the sale of unregistered, non-exempt securities, (ii) canceled third-party services that were central to its compliance with state securities registration requirements (a/k/a "Blue Sky" laws), and (iii) failed to supervise personnel and maintain adequate books and records.

LPL agreed to pay over $25 million in penalties to multiple states.

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