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 Rosca Wolf Securities Lawyers Often Assist Investors

The Peiffer Rosca Wolf 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 Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1168 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.