Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

LPL Financial Faces Potential $50 Million SEC Fine for Recordkeeping Failures

Posted on September 13th, 2024 at 5:02 PM
LPL Financial Faces Potential $50 Million SEC Fine for Recordkeeping Failures

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

LPL Financial faces a fine of up to $50 million from the Securities and Exchange Commission (SEC) for non-compliance with records preservation rules, as reported by InvestmentNews. The penalty relates to business-related electronic communications stored on personal devices or unauthorized messaging platforms.

The firm disclosed that negotiations are ongoing. This potential fine initially was reported by InvestmentNews, following LPL's disclosure in its third-quarter report in October. The broker-dealer recorded a $40 million expense in the third quarter of 2023 to account for the portion of the penalty not covered by its captive insurance subsidiary.

The SEC also has charged multiple broker-dealers and investment advisors for widespread failures to maintain and preserve electronic communications, including WhatsApp messages and texts. Sixteen firms agreed to pay combined civil penalties exceeding $81 million.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Hiring Ä¢¹½´«Ã½ has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Ä¢¹½´«Ã½. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.