LPL Financial—Failure to Establish and Maintain an Adequate Supervisory System
LPL Financial Allegedly Failed to Establish and Maintain an Adequate Supervisory System Deployed in Order to Ensure Eligible Customers Receive Applicable Sales Charge Waivers
LPL Financial allegedly failed to establish and maintain a supervisory system and procedures reasonably designed to ensure that eligible customers who purchased mutual fund shares received the benefit of applicable sales charge waivers, according to a recent Letter of Acceptance, Waiver and Consent (AWC).
From at least July 1, 2009, LPL allegedly has disadvantaged certain retirement plan and charitable organization customers who were eligible to purchase Class A shares in certain mutual funds lacking a front-end sales charge for whom are known as Eligible Customers, the AWC also notes.
Said Eligible Customers were, the AWC further alleges, instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses.
LPL Financial Has Been Censured, Must Write a Written Report Describing Its Corrections, and Pay Restitution Totaling $5.72 Million to Eligible Customers
LPL allegedly failed to adequately notify and train its registered representatives regarding the availability of mutual fund sales charge waivers for Eligible Customers, according to said AWC.
By allegedly failing to adequately supervise mutual fund sales to ensure that Eligible Customers who purchased mutual fund shares received the benefit of applicable sales charge waivers, LPL violated NASD and FINRA Rules.
As a result of the aforementioned behavior, LPL Financial has been censured, the firm must write a written report detailing its corrections, and must pay restitution totaling $5.72 Million to Eligible Customers, according to the AWC.
The Peiffer Wolf Carr & Kane Securities Lawyers Often Assist Investors
The Peiffer Wolf Carr & Kane securities lawyers are assisting investors who lose money as a result of inadequate supervisory systems. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of inadequate supervisory systems are encouraged to contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.