LPL to pay $11.7 million sanction for ‘widespread’ supervision failures: FINRA
By Suzanne Barlyn
(Reuters) – LPL Financial Holdings Inc must pay $11.7 million for “widespread supervisory failures,” including sales of a risky type of exchange traded fund and other complex securities, the Wall Street’s industry-funded watchdog said on Wednesday.
The “supervisory breakdowns” also included the firm’s lax surveillance of trading in customer accounts, the Financial Industry Regulatory Authority (FINRA) said.
LPL neither admitted nor denied FINRA’s allegations, the regulator said. The $11.7 million sanction includes repayment of $1.7 million to certain customers, FINRA said.
(Reporting by Suzanne Barlyn; Editing by Chizu Nomiyama)
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